How to Lose the Most Trading Stocks
January 20th, 2008 by admin
1) Don’t rush in to buy. Wait. Watch it for a while. Check what they say on the Yahoo message board. See what Cramer thinks about it. Find out if any of the advisory services recommend it. Ask around at work if they’ve ever heard of it. Watch it some more. If all the sources check out alright AND it’s up 40% from where you first saw it - BUY.
2) Set your stops 5% below your purchase price - because, you know, stocks never go down more than 5% below your purchase price.
3) If you’re down from where you bought, buy more to average down and lower your breakeven point.
4) If you’re down big time, wait for it to come back before selling - because, you know, they always do.
5) If you’re up from where you bought, take your money and run before you lose the profit - because, you know, good things never last.
6) If you’re not sure what to do, go to Yahoo stock message boards and ask. Plenty of free objective unbiased advice from friendly folks with your best interest at heart. But only listen to what you want to hear.
7) Your best sources of timely investment information are the business section of your local Sunday paper, weekly periodicals, and TV - in that order. Who needs Investors’ Business Daily when there is so much good stuff out there that’s free?
You can time the market. The best time to buy is after a family weekend barbeque when everyone and their uncle are boasting about how much money they’ve made in stocks.
9) Attend a free stock trading seminar (make sure they serve a free meal) and buy their software package. The ones where you only have to watch for three green arrows or trade for no more than 30 min. a day to get the lifestyle you deserve are especially good.
10) Hunches are good, too. After all, those bozos on Wall Street don’t know what they are talking about.
11) If you want to learn about investing, take economics at your local community college.
12) If buying breakouts doesn’t work, try something else. Shorting is good. Or futures. Just keep trying new things until you find that one thing that will make you rich.
13) Your best bet is low risk high return situations. Don’t let them talk you into “any of them risky things”.
And remember: if you don’t look at the screen, the losses are not really there.
Slav Fedorov is a full time stock trader and founder and managing member of TradingZoom, LLC - a provider of proprietary trading data that swing traders can put to work right away.
http://www.tradingzoom.com
Posted in Online-Stock-Trading, Selling-Stock |