Tips On How To Easily Male Money On The Stock Market

Initially I was up big in stock trading. It was so simple. I simply couldn’t believe making so much money could be so easy. I started dreaming about managing billions and taking over the world with your trading system. Doesn’t everyone?

Then the markets turned (as they ALWAYS DO) and I gave back about 40% of my profits. Still not bad. I was up over 40% as a complete novice.

But how did I do this? Well, I was simply doing the right things at the right times without even knowing it.

What are the “right things”?

1) It was a bull market. It was one of those glories bull market cycles we had so many of in the 90′s. 8 out of 10 stocks were trending up. Money was flooding into stocks. This was a great time to be in the stock market. I was lucky on the timing no doubt about it.

2) I was investing/ trading in the leading momentum stocks and sectors. Software, internet, high-tech sounded “sexy” to me so I only bought stocks in these sectors. I was looking for huge spike in volume (buying) and following them.

3) I was going with the leading stocks. If it was going up I was jumping in. Stop overdoing it. No price analysis looked at. Not over thinking. I bought into the leading companies.

4) If I was wrong I would cut my losses. If I was right I rode it up as far as it would go. I didn’t get fearful with profits. I didn’t want my losers to “turnaround” (not that they ever do). Stop searching for advice and opinions that backed up my hopes. I was like a robot. Good trading is trimming losers fast and letting winners grow.

And that is about it. You want to make money in stocks just do the basic things right:

1) Find the major trend of the markets and go with it. Bull market go a long the leaders. Bear markets stay in cash or short stocks.

2) Always practice good money management. Do not put all your eggs in one basked but also do not diversify too much. Cut your losses, Let the winners ride. Take low risk trades and follow your rules.

When the cycle is right and you are aliment with it. Making money in stocks is dead easy. There’s nothing easier to do. Trade them incorrectly. Get the cycle wrong and try to fight it and you find it very easy to lose money. It’s your choice.