Usually, the experience is the ultimate key to be a successful investor. But, before you gain some experience, you can learn from investors or traders who have been in the market for years, sharpening and polishing their skills to gain an added edge. Below, take a look at these 5 proven investment tips from Steven B. Achelis, the author of “Technical Analysis from A to Z”.
- Don’t compound your losses by averaging down (i.e, don’t keep buying additional shares at lower prices). It is tempting to think that a loss “doesn’t count” until the position is closed – but it does!
- Any time you own a security, ask yourself if you would buy it today. If you wouldn’t buy it, you should probably sell it
- Don’t get distracted by others’ investment prowess. Most investors only discuss their successes, threatening your focus and confidence
- Wise investments aren’t made with Ouija boards. They are made using logical approaches that minimize risks and maximize opportunities.
- Master the basics. Most investors spend their time looking for easy money (which is not an easy search) instead of learning the key factors to security prices – supply and demand.
And finally, don’t forget to trust your investment decisions. Remember, in order to become a better trader, the goal is to reduce your risks.