Most stock market professionals knows the stock market is actually a loser’s game. But amateurs have no idea at all.
How to Win at Football & Stock Market
The main problem with amateurs is that they like to focus on attacking play in the stock market. They love to play offensive all the time. Often they do this by chasing after stocks that have already run up a lot. In most cases, they will end up losing money because the time they start to chase could probably be the exact moment the stock operators decide to sell.
By focusing on winning and going on the offense, the amateurs end up making silly mistakes and getting themselves caught by the market pros. Its' just like football - Go watch a professional football team playing against an amateur football team and you will know what I am talking about.
Most times, the professional football players will wait for the amateurs players to make silly mistakes and they capitalize on theses mistakes to score a goal! What the professionals knows the amateurs do not is that the winner of the game is the one that makes the fewest mistakes.
So if you want to win the stock market game, you will have to stop playing the offensive position all the time. Instead switch to defence position. Keep the ball in play by not chasing after stocks. Instead, look for stocks that have not moved much. Buy and hold them until the stock start to rally. Then sell it off. Allow your opponent (who surely is another amateur) to make all the mistakes. He will.
Another offense position people take is buying a stock already at a high price and hoping to sell the stock at even higher prices. A few times they might succeed but most times they will end up losing money. Instead of buying stocks at expensive valuations, you should be waiting for stocks bargains during a stock market correction or look around for undervalued stocks. That’s how to win in the stock market!
A third attacking play is jumping from one stock to another stock. Sometimes it could be after making a small profit or incurring a small loss, other cases after the stock did not move as anticipated. It is another type of silly mistakes that will cost you in the stock market. That’s not the way to win the stock market game. I could go on … but ah ha… I see you already got the picture.
So if you want to win the stock market game, you will have to stop playing the offensive position all the time. Instead switch to defence position. Keep the ball in play by not chasing after stocks. Instead, look for stocks that have not moved much. Buy and hold them until the stock start to rally. Then sell it off. Allow your opponent (who surely is another amateur) to make all the mistakes. He will.
Another offense position people take is buying a stock already at a high price and hoping to sell the stock at even higher prices. A few times they might succeed but most times they will end up losing money. Instead of buying stocks at expensive valuations, you should be waiting for stocks bargains during a stock market correction or look around for undervalued stocks. That’s how to win in the stock market!
A third attacking play is jumping from one stock to another stock. Sometimes it could be after making a small profit or incurring a small loss, other cases after the stock did not move as anticipated. It is another type of silly mistakes that will cost you in the stock market. That’s not the way to win the stock market game. I could go on … but ah ha… I see you already got the picture.
Conclusion
Never forget the stock market is a loser's game. It is a place where the winner is the one who makes the fewest mistakes, not someone who can hit more winners.
Don’t be like the majority who focus on attacking but they end up with losses instead. In the stock market you need to play conservatively, stay defensive, let other people make the silly mistakes and capitalize on their errors. That is the secret formula to success in the stock market!
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