Investment In Current Market

Read an article about investing and trading in stock by Thomas Sutton. Thought it will be great to share it with friends here too...

The market can be especially impulsive during earnings season, and every trader feels the g-forces when stocks choose to mimic roller coasters. Here are a few suggestions that will help you stay on track no matter what route the market decides to take ...

- Check Your Emotions. The market is much more powerful than any individual. Though you have no control over what it does, you do have control over how you respond to its actions. Getting emotional when the market goes down doesn't make it go back up. On the other hand, the stress could cause you to make unwise decisions. Avoid this sort of self-sabotage.
Remember - although your actions won't change the market, they WILL determine how much money you make.

- Be Sure Of Your Time Horizon. Most people buy stocks without first considering the time frame that suits them best. Are your plans short-term or long-term? It makes a big difference. A teenager that opens her first trading account has a much different time horizon than a sixty-five year old that plans to retire next year. Before entering a position, always consider which time frame will best serve your needs.

- Use Risk Management. Losing trades are a fact of life. Applying risk control tactics will quickly eliminate losers and insure they don't hurt you. Your advanced winners can provide the gains to offset any minor losses AND leave you with a good profit. You also have the option to stand aside when nothing seems to work. Just bear in mind that while the sidelines offer a temporary safe refuge, you have to be in the market to make money.

- Choose Your Attitude. Success in the stock market requires more than just a proven trading strategy. Winning is a reflection of your state of mind. Never let the negative attitude of others cause you unnecessary grief. Genuine confidence dissolves fear, and paves the way to a prosperous future.

Trade well,
- Thomas Sutton, Editor

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