The top reasons why people lose money trading stocks in the stock market.
It’s said over 90% of all traders lose money in the stock market.
So how do we avoid the common mistakes people make when trading stocks?
First, buy low and sell high, a simple system, but not one many follows.
Most people buy when a stock rises instead of when it goes down for a quick bonus.
Second, don’t buy unsafe stocks and penny stocks, only go for safe companies.
Companies like Google, Amazon, Coke, Apple, and Microsoft are pretty safe stocks.
Third, trade for the long term not short term, for maximum profits from stocks.
Waiting out bear markets can bring your stocks into a bull market.
Fourth, only buy stocks you understand, on companies you use daily like Apple.
Don’t take huge risks with random companies, you won’t feel safe and panic sell.
Lastly, know when to sell, with safe stocks you can hold for many years to come.
With less safe stocks, sell if common sense tells you a company has nowhere to go.
If you’re a stock market beginner who’s new to the stock market, buy the S&P 500 index fund.
Recommended by Warren Buffett, a perfect safe stock for beginners to stocks.
Listen to these tips and you’ll make money in the stock market.
You have an advantage from professional stock traders who fail just by keeping cool.
This is the best way to invest in the stock market for beginners explained in basic terms.
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