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how to be successful in stock market

how to be successful in stock market

 

You, and only you, must break away from the herd to learn to think on your own to be a success in the market.

The successful investor is one who thinks for himself. Are you an independent thinker or one of the sheep about to be cut into pieces? Do you relish the idea if thinking for yourself and participating in financial success? Of course, you will be scorned by Wall Street and their minions and told you need an “expert” to help you invest your money. We have seen what the “experts” did from 2000 on.

 

how to be successful in stock market

During the last 4 years I challenge you to check out the price of any growth, stock or index mutual fund in January 2000 and compare it with the price of today. The S&P500 Index lost 50% of it value and has rallied 37% from the recent low, but is still down 29% from the high of 2000. With the bull move of the last 8 months you won’t find very many, if any, stock funds that have come back to those old highs. Yes, there will be individual stocks that have made new contract highs, but very few of them have done well enough to get the poor sheep (pun intended) back to even.

For the past 100 years there have been consistent secular 16 to 18 year bull and bear markets, one after the other and within them have been shorter cyclical bear and bull markets where the thinking investor has been smart enough to be investing or be in a money market fund.

It is timing the long-term bull and bear phases and is relatively easy despite what Maul Street tries to have you believe. If your broker or planner has not learned how you need a new and smarter advisor.
You, and only you, must break away from the herd to learn to think on your own to be a success in the market.
1. Don’t be lulled by dividend payments. A high dividend can often lead you to believe a stock is a good buy when it really isn’t, a problem known as a value trap. For example, the bank once known as Washington Mutual paid a high dividend right up until it crashed. “Make sure some catalyst in the future isn’t going to make that dividend go away,” Schifrin warns.
2.Commit to always learning and growing as an individual and you will be a successful stock trader. Define what you want to get out of your trading and then strive to do what it takes to achieve those goals. If you don’t hit a goal within a given time frame, then reset the time limit. There are no unrealistic goals only unrealistic time frames. Keep striving and growing and you’ll not only be a successful stock trader, but you’ll be successful in all areas.
3.Be patient and give yourself time. Great works of art take time to create and the same rule applies to your stock trading. Great stock traders often made mistakes by rushing in too quickly or trading too big for their account size and then go bust several times. Strive to take the time to learn how to do it right and you can avoid these mistakes.

4. Don’t accept company’s figures unquestioningly. One of these dedicated investors carefully analyzes all of a company’s financial statements, including cash flow, tax credits and operating loss carry-forwards, and tosses out fictitious “assets” like goodwill and brand value. “Be careful to strip out a lot of things that aren’t significant earnings-producing assets,” Schifrin says.

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