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Ten Basic Tips on How to Survive in the Stock (Shark)
Market!
The stock
market today is awash with the blood of investors who have been literally torn
apart by the feeding frenzies of the Sharks that are ever roaming, and very
prevalent in today's marketplace.Particularly if the investor is not forewarned
of the dangers lurking or are unprepared and dive into the waters blindly.
So how
can you put the odds in your favour so you don't get eaten alive the minute you
go dabbling in the pool?
Like any
diver you need specialist equipment and knowledge, training and preparation
before you take the plunge.
1. The
first essential piece of equipment is a "Business Plan". This
prepares you for the future as you will know your destination (goals), the
results you want to achieve, and you are then prepared for any nasty surprises
that might eventuate during your swim in shark infested waters.
2.
Secondly know the "Risks" involved. Are you aware of your risk
tolerance? Beware you are not out of your depth and putting your assets or
yourself in danger.
3.
Research the areas you will be moving into. Know in advance by looking up the
relevant charts and fundamental information of your future targets.
4.
Protect your assets by using insurance (Stop Losses.) This will minimise your
losses and protect any gains you might have already achieved.
5. Be
ever aware of your emotions particularly "Fear." For this will freeze
you or cause you to panic. This will expose you to dangerous undercurrents and
place you in unnecessary danger.
Know your own strengths and weaknesses .Avoid feeding frenzies as you might end
up being on the menu instead.
6.
"Greed" will also cause you to venture into uncharted territory in
the hope of finding more treasure. This is the time to stick to your preplanned
path of safety.
7. Keep a
constant check on your progress. Are you on track? Have you deviated from your
preset course?
8. Know
when its time to exit because of either having achieved your goals or because
it is no longer safe to stay in the water.
9. Learn from your mistakes and profit by the experience
of those who have gone before.Particularly those who have lived to tell the
tale.
10. Lastly
but most importantly know whether it is prudent or suicidal to enter the
market. And have the patience to wait till the right conditions presents
itself.
No doubt
you will find more lifesavers as you venture into new unexplored territories
and your survival instincts will improve on each trip that you successfully
complete.
Remember to
look out for the "Sharks" they are ever out there!
Strudy is a keen successful share trader on the
Australian Stock Market. Visit his weblogs for more free articles and useful
information at both http://www.asxnewbie.com
and http://www.aussiewealthreview.com
you just never know what “Golden Information” you will find there.
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