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Is the stock market unstable?

As much as the stock market appears to be volatile and unstable, you can maintain a firm grip on it and make the best out of it. All that it requires is for you to understand it and abide by some golden rules.

A lot of people have fantastic tales to tell about their investment in the stock market, whereas others have the contrary to tell. It is said, “If you fail to plan, you plan to fail.” That being stated, I will say that for those who have succeeded in the world of stock trading, there must have been a brilliant strategy laid down before they plunged in. And it is obvious that the minor failures never planned to make profit, hence the result.

Setting your own goals and risk tolerance is the first key to registering success in stock marketing. Study or unveil the secrets that made the success-tale people successful. Know the mistakes that made others failed. Come abreast with latest of information as well as the old of the facts of stock market. By the time you have made yourself knowledgeable in the realm of stock marketing, you will automatically know the dos and the don’ts that will favour a more than ample returns on every buy or sale of your stocks.

All business ventures involve taking risk so as to make substantial returns, which is the same for stock trading. However, investing in the stock market involves taking “wise” risks. Never close your eyes before you plunge into the pool lest you fall hard on a rock. However, with proper foresight and planning, you will be able to make risky but prudent investment in the stock market that will avail you the opportunity to make huge profits on your stocks. Putting 3% of your portfolio in any one stock has been regarded as the limit for a prudent stock trading any investor should take. This will ultimately protect your capital base from dwindling any day, anytime.

After you must have laid down the rules that will serve you best in making any decision, you should stick to them no matter what. No matter the pressure on you to make a rash decision about buying or selling a particular stock, your rules should always come first, and they will definitely aid you in making the right decision. In my experience in making such decisions, I have found out that the decision made at that particular point in time always seem like a wrong decision, especially in the light of the “hot” opportunity to make money. But after the frenzy has calmed down, and the impetuous investors are busy counting their losses, I will be more than glad to have stuck to my guns and held firm to the rules that works best for me.

Finally, I will advise you to be patient and quietly watch as your stock grows. Rome was not built in a day, which is the same for piling up valuable stocks. You must exercise patience and tolerance as you make mistakes and build on them, so that you can emerge with an enviable tale tell of stock market success.

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