Winning the stock market game is possible but most traders lack the precision and proper planning to win. Over the past ten years, statistics reveal that traders got returns of only 7.4% for stocks and 4.6% for bonds as profits from their investments. Chasing high stocks is the core problem that make many investors to loose in this stock market game. Once the price starts crushing down, investors start to panic making the people to look for other alternatives like quickly selling the stocks just before it stages off. As you keep following the “Forex calendar in a bid to know when to play, here are some of the rules you need to abide to for you to win big.
Invest on A lot of Stocks
The simple and sure amateur’s trick to winning stock markets is diversification of the investments. Different investments that react differently puts you in a position to win a lot of money. When you invest on a single stock market, once it goes bad, you end up losing everything but when you are diverse, you enjoy winnings in most of the investments.
Keep Watch on Investing Fees
Every site charges investing fees with some charging up to 2 percent of all the investments a person makes. This means if you don’t trade well, you could end up paying a lot of fees in a year. Take for example you invest 100 dollars every month. That means you will be paying 2 dollars every month and that would translate to 24 dollars the whole year. That is not a huge amount but some people may invest even a million dollars. That means a huge amount will be spent on investing fees. Find a free platform if possible where you will be investing on stocks and only be concerned of profits not anything else.
Don’t Take Margins
Margins simply means loans that your broker gives you to trade with. The moment you use a margin and win, consider it a big pay off because first, you haven’t paid anything from your pocket and second because loans attracts high percentages in terms of returns. The problem comes when you lose because you will have to pay the loan plus an interest rate of ten percent which makes the whole thing a loss and mentally traumatizing experience. Avoid margins and only trade using your money.
When it comes to stock trading, it is important to make sure you have insight and full information about how to trade and how the trends are. Tax savings and pension are the only stock reaping that will be hefty but online trading and other games will just give you unpredictable instant cash. Learn the basics and make sure you master your skills before you invest on stock markets. These are not for everyone because you could end up losing everything. Take your time, understand the system and make sure you use even artificial intelligence tools that will give you real time statistics before you start playing.