Post category : Investment

How to Succeed by Investing in the Stock Market?


How to Succeed by Investing in the Stock Market?

I will mention the most important things that the best international and American investors, the likes of Benjamin Graham, Warren Buffett and William O’Neil, among others, recommended do’s and don’ts for success in the stock market.
1 .- What mentality we need to win in the bag?
2 .- One key recommendation: “Cut your losses and let your profits increase”
3 .- The importance of having a long-term vision

To invest you need to have a mentality and attitude that will make the difference between success and failure.
We must be disciplined and develop a habit, a habit, a way of investing that suits our goals and our personality, and profitable. At the end of the day is for this to what we invest on the stock market to try to maximize our profitability, although this should not blind us.
If we look at two investors who own the same stock (value), we can see that one is making money while the other one is missing. This is motivated by the acquisition and sale price of the shares. Even though both buy the shares at the same time and at the same price as the subsequent movements of each, see different results. Therefore, besides knowing how to identify which stocks to buy, you have to know how to manage the portfolio, to decide when to sell and when to buy again.

We Must Find An Investment Strategy
We think that is a matter of ‘view’ or luck, but even the vision and luck played a part, the reality is that you must have a defined investment strategy and follow it, rather than following our impulses. In so doing, minimize risk, and long term, our results will be better.
The most important thing is that we must try to be mentally neutral when investing, not to get carried away by our emotions. All we know is difficult, because emotions are inherent to human nature, but the more goals we better develop our investment.
Therefore it is important to our plan of action prepared in advance and leave as little as possible to the ‘inspiration of the moment. “We must try to be men or women ‘ice’, and strictly follow our plan.

A Market In which There, Only, the Hope and Fear
William J. O’Neil, founder of the famous U.S. financial newspaper Investor’s Business Daily, in his book “24 Lessons for Investment Success” event at the prestigious investor Jesse Livermore. He once said, rightly, that the markets there are only two feelings or emotions that are the hope and fear.
Both are often confused, because sometimes people are afraid when I should have hope, and sell a company when climbing out of fear it has already risen too much and is going to turn around. The consequence is that they sell too early so you do not maximize their profit.
On the contrary, people have hope when we should be afraid, and endure a company instead of selling it when it is falling. They think that at any moment is going to turn around and come back up, which often does not happen, and the consequence is that losses soar.

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