You have to buy high and sell higher.
If you buy "low" chances are you're gonna get a tough ride lower. Unless you are an experienced technical analyst and more than one signal (indicator, investor sentiment, etc) is crying a buy signal.
I have seen so many new telemarketers (ex traders) in my 20 years of markets that this is one of the best advices I could give.
Don't try to catch an early trend. Wait for it to develop and jump in in the early stages NOT BEFORE.
There are a lot of signals to listen to. Learn about trading psychology, keep your mind open, study, make your own research (or hire someone for that), learn technical analysis, funnymentals (errrr "fundamentals") and then yes, you can get in i.e. ready to be crashed and humiliated by the markets. They will do it. So study. This is not gambling.
BE HUMBLE.
PS -There are people who enjoy buying high and selling lower. But this will be another topic for this blog soon. Stay tuned.
Friday, February 01, 2008
My Advice to Novice Traders
I want to demystify the "buy low sell high" syndrome.
Subscribe to:
Post Comments (Atom)
That's a plausible advice. The market doesn't work for me. :-)