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Stock Trading – Wise Words and Tips
Buying Stocks
Don’t try to buy stocks at bottom.
Don’t stress yourself trying to achieve the impossible. Give yourself time to make sure an uptrend has truly begun before buying shares.
Never throw good money after bad.
If you’ve bought shares in a stock that subsequently falls, never, never, NEVER buy more shares. Long term, the strategy of “averaging down” – buying more shares when a stock’s price falls – is a sure way of averaging down your investment performance. (Note: If you are passively investing each month in an index fund, do not heed this advice.)
Selling Stocks
Cut your losses and let your profits run.
Don’t keep your money in a stock after the trend has turned downwards. Only keep your funds in stocks whose trend is upwards.
Never be too proud to take a loss and move on.
When studying new methods
Analysis is simplifying, breaking down things into parts, picking out strands and elements. Analysis is comparing unknown things with things that are known. Analysis also involves picking out relationships and putting them back together as a whole.
Edward de Bono
When trying a new approach
Striving and struggle precede success, even in the dictionary.
Sarah Ban Breathnach
When you just know you are right and the market is wrong
Markets can remain irrational far longer than you or I can remain solvent.
John Maynard Keynes
At all times
The most powerful force in the universe is compound interest.
Albert Einstein