How to Make Money in the Stock Market and Keep It

A List of Stock Market Trading Basics

I have always said that making money in the market is easy. It is learning how not to lose money that is the hard part of trading. To that end, when you find yourself in the surprising and often disturbing position of having made a whole lot of profit or more profit than you expected in a very short time, you may be feeling overwhelmed. This is when you need to remember some basics.

Here is a list of Stock Market Trading Basics:

  1. Stop trading for at least a few days to a week. This sounds ludicrous, but my experience with Students is that those who follow this rule keep their big gains while those who do not lose them back to the market and then some. The reason behind this is emotion. You are in a state of emotional flux and are not thinking logically. You are thinking, “I’m brilliant, I’m invincible, I am going to be rich!” Well, sure, but not at this moment. At this moment, you are overly exuberant, irrational, and not trading wisely. So, take a few days to cool off. The Stock Market is not going anywhere, and great trades will present themselves over and over again. There is no end to the trend of good stock picks with a lull in the Stock Market and then good picks again. The primary factor in making money and keeping it depends upon the ability to stop trading and getting yourself under control again.
  2. While you are recovering from the shock, and yes it is “shock and awe time” for most beginners as well as veterans when this happens, you need to do a couple of homework assignments. First, go back to your training course, trading books, or educational resource to review and restudy the material.
  3. The next step is to write down your Trading Goals, set your established self-worth income, and then try to increase it. Traders are their own worst enemy. You are not battling the market, the Market Makers, or other traders. You are in battle against yourself. Every single person on this planet has a self-made invisible ceiling for the income level at which they feel comfortable. This subconsciously sets income “roadblocks”, keeps people from making more money, and causes them to lose money in the Stock Market. The reason is “fear of success”, which is too much success too fast, creates panic and fear because you are then utterly out of your comfort zone. If you really and truly want to be successful in the market, you must have written goals. These goals must be very specific and detailed. You must define your comfort zone and continually push the parameters upward to increase your ability to make more profits. Otherwise, you will stagnate and not increase profitability.

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Trade Wisely,

Martha Stokes CMT

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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