Website design By BotEap.comWe will discuss a few key points in this article that will keep you out of the stock market graveyard. First, don’t start trading unless you have money to lose. Obviously you are not going to lose everything like you do in a casino, but if you do not do things right, you can lose quite a lot.

Website design By BotEap.com Do your homework

Website design By BotEap.comDon’t buy a stock just because it’s up 10% in the past few days. Many people make this mistake. They get excited because they think they can make some quick money, but then they buy the stock at its peak and end up right back where they started. To sum up this tip, do your homework before you buy anything. If you don’t, you’ll definitely lose out, unless you’re really lucky…

Website design By BotEap.com Check your ego at the door.

Website design By BotEap.comIf you go into the stock market thinking that you are above it all, thinking that you know everything, you will definitely lose out. Don’t be afraid to listen to your broker if he tells you something is a bad buy. Even though most runners are underdogs, they know what they’re talking about.

Website design By BotEap.com Know when to go out.

Website design By BotEap.comAnother mistake many beginners make is waiting forever for a stock to go back up. They think they can get back what they lost by waiting. The thing is, you can probably make more money somewhere else instead of waiting for your loser to come out of the proverbial gutter. Cut your losses and forget it, which brings me to my next point.

Website design By BotEap.com Develop a bad memory.

Website design By BotEap.comYou can’t stop at the stock market stuff. You’re going to pick a few losers here and there. It will happen. When it happens, just cut your losses, forget about it and move on. The same with the winners. When they’ve done their race of the century, get out before they come back down. Don’t get greedy. Stay in the present always! Just because a specific stock had a good year last year doesn’t mean it will have another this year. You have to stay on top of it.

Website design By BotEap.com DDDD diversify!

Website design By BotEap.comThe worst thing you can do, short of betting the farm on a penny stock, is to put all your eggs in one basket, or an industry in this case. You have to spread your resources across many different industries, and even many different investment types. The reason for this is… when one industry is having a rough patch, another industry is almost certainly having a hot patch. Your good guys will outweigh your bad guys.

Website design By BotEap.comThere’s so much more to the stock market, but these 5 tips will help you when you’re just starting out.