Must know tips if you're active in the stock market!

• Do not forget that it is extremely difficult to buy at the absolute bottom or sell at the very top. Also remember what Bernard Baruch said try to always sell a stock so the person who buys it from you can make a profit. This won't get you out at the high but will allow you to enjoy most of the ride.



• A few don'ts that you should remember: don't trade against the trend, don't over trade, and don't let profits turn into losses.



• Remember that it is very easy to buy stocks but it is more important to know when to sell. If you have a profit, you need to know when to take it and also the times when it is better to take a small loss instead of a larger one later.



• Lots of money is made by the public during a bull market, but as usual the public never sells and instead lets profits run into losses until compelled to sell by necessity or by margin calls.



• Remember: Nobody ever lost money by taking profits.



• Never buy, or sell short, more stock than you can afford.



• Do not be impatient and be tempted to over trade for big profits. Bear in mind that tomorrow is another day and the market will still be there if you have the money to act when the time is ripe, but it will be useless to you if you are out of funds.



• Four Step Game Plan (will be discussed in greater detail in future articles)

1. Market Indicators: Is risk high or low? Offense or Defense?
2. Sector Indicators: Opportunities, rotation. Favored Status?
3. Fundamental Inventory: What to Buy?
4. Review on a Technical Basis: When to Buy? Managing the Trade

Article Source: http://articlenexus.com

At Envision Asset Management we strive to educate ourselves and others as much as possible. Thank you for taking the time to read this article. Please e-mail us if you have any questions or feedback. Envision Asset Management Team, www.envisionasset.com.

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