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Investment Stock Market

Still Trying to find a Good Strategy in the Stock Market

6/5/2014

They say that you need to be prepared before you enter the stock market.

First, you should have at least researched some information about how it works and the risks associated with it. Second, you need to have money that you’re going to use to fund your account especially if you’re going to be an active trader. This is the money that you think you can afford to lose and not the money that you expect to use to pay for your next bills. Third, you need to have a strategy. And for me, this is the most difficult but the most important thing to have before venturing into the stock market.

When I entered the stock market, I had a little background about stock market from what I’ve read in the articles and blogs online. I invested a small capital to fund my account to start trading. But I didn’t have the last thing, which is also the most important of all. That’s strategy.

What I only knew is that when you’re in the stock market, you buy low and you sell high. It sounds easy and I thought anybody can do it, including myself.

That’s what I thought. That stock market is just as easy as one two three.

As I trade, I try to follow my rule of thumb: to buy low and to sell high.

Yes I tried… I try… And I keep on trying. But contrary to what I initially thought, it’s indeed not easy.

I try to buy a stock when I feel it’s low and I plan to sell it when I gain about 5-10% profit. But most of the time, the market doesn’t seem to go my way. Thus I get stuck and I just find myself waiting until the price goes up again before I sell it. Sometimes, I sell it even if it’s way lower than my buy price just to cut the losses. And I ‘go home’ feeling down.

I don’t know what my strategy is. I don’t even know what I’m doing now. I feel like I’m going nowhere. And yes I know I’m in the danger zone!

But I believe experience is the best teacher. Had I not entered the stock market, i wouldn’t know how it actually feels to be into it. And most of my losses are giving me a lot of lessons.

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Image Source:

http://blogs-images.forbes.com/work-in-progress/files/2012/09/Strategy.jpg