What is the secret to the stock market? How are some people so successful? Is it intuition or is it extensive analysis and research?
You want to solve the enigma of the stock market and become a successful and wealthy trader. Unfortunately, there is no one trick or secret that guarantees success. Rather, it takes a lot of studying and training to gain the skill set you want.
To get you started, here are a few tips from successful investors.
Stock Market Tips and Tricks
- Diversification is not as important as they say: While almost all investment advisors preach the importance of a diverse portfolio, many successful investors do concentrate on a small number of stocks. If you fully understand your stocks, there is no need to diversify.
- Debt-to-equity must be below 50%: You do not want to see a lot of leverage on company’s balance sheets.
- Don’t Fall for a Value Trap: A high dividend may lead you to believe that a stock is good when it really isn’t. Do your research.
- Don’t listen to gossip: Always look at statistical analysis and do your own research. Just because a company is introducing an exciting new product doesn’t mean that stock will rise.
- Have a system: Use a system to determine when to sell; don’t sell based on your gut feeling. For instance, one investor may sell when stock falls 20% from their high point.
- Don’t be greedy: Take your profits. Some investors ride a stock all the way up but don’t sell, eventually riding it back down again.
Now, it’s time to put these tips to use. A risk-free way to practice your skills is by using an online stock simulator. This is a fun way to test yourself, but before you invest any real money, you will need to learn the specifics as well as the theory behind the method. The only way to ensure that you are receiving the most reliable information is by enrolling in an online trading school.
By studying online you will have the flexibility to work around your other responsibilities such as a job, family, etc. You will learn to trade the market on your own time.
After learning the basics in the investment courses for beginners, you will advance to more complex trading courses taught by experienced traders in order to gain the level of knowledge and skill required for stock market success.
An online trading school will prepare you for the two licensing exams: the Series 7 and the Series 63. Participants must pass the Series 7 with a score of 70% or higher, and the Series 63 with a score of 72% or higher.
If you are truly dedicated to becoming a successful investor, you need to have an education in the field. The best way for working adults to obtain this education is through an online trading school.