Earn money in the stock market
Earning money in the stock market may seem risky, difficult or inaccessible. Surely you will have heard of people who have pitched and lined up. Also from others who have lost everything. But the truth is that, making money in the stock market is possible. It always involves some risk, but it is also possible to cut the risk to avoid losses. Just follow a few steps, have them very clear, and never skip them. Overconfidence is perdition, caution and following a fixed path is the key.
With these steps that I am going to tell you, you can make your investments in the stock market safe. I will not guarantee you a guaranteed benefit, but the peace of mind of not losing your shirt, and being able to make your investments profitable:
1. Define a strategy
Mark the path and have a goal, and, no matter what happens, do not get out of the marked strategy. The result should be the difference between the initial investment and the result at the end of the road. One of the biggest mistakes in investments in the stock market is not following the strategy, changing it, and not meeting the goals.
2. Be patient
Patience is the mother of science. Nervousness is an investor’s worst friend. So many if you are winning as if you are losing, temptation is strong, but success comes from having a cold mind, tranquility, and patience. If an investor bought Bitcoin when they were trading at 1 dollar, thinking that they could reach $ 1,000, they would hardly stand their strategy looking at the price all day, and would have sold at $ 100 without closing the target set. To look a lot is to increase nervousness. Imagine that the investor thought about his long-term strategy, and in a few years he went to look and observe that Bitcoin reached $ 17,000.
Do not put all the eggs in the same basket. Although we think it is very profitable, we must diversify. Diversification means that the average return will not soften, but also the average loss. And if the strategy is good, diversification can bring better benefits and greater peace of mind.
4. Follow the trend
There are many strategies based on the trend. That is, get on the wave and get carried away, like a surfboard. There are medium and long-term strategies based on blue chips that consist of being inside as long as stability and wave criteria are met:
1. To Be at historical highs.
2. Bullish trend (bullish moving averages).
3. Low volatility
4. Extensive negotiation
Where the signals are usually given by means of crosses. This is to follow the wave, while it rises you are inside, when it descends you leave
5. The last profit to take another
Do not try to rush a strategy seeking maximum profitability even when the objective has already been achieved. Often a nobel investor’s mistake is to stay inside to hurry, or wait for a minimum to enter, with the aim of entering minimums and exiting maximums, without taking any strategy. It is a mistake that usually ends in cresting, just the opposite of what is sought, or abruptly losing all the benefits.
6.Use Stop Loss
Loss control is essential. Put stop loss dynamically or based on trend calculations, which allow to give out the investment assuming losses. A very common mistake among novice investors who lose a lot of money is to remain within a value even when they are losing, with the idea of recovering past prices again. This usually leads to «caught» in securities that will never recover past quotes.
There are 6 easy-to-follow tips (or not) with which to have certain security in your stock market investments, which allow you to earn money in the stock market with peace of mind and without major risks.
PS: A blue chip is a well established company, included in the main index or that are part of the large indices, with stable income and low volatility.