Don't Be a Victim of the Stock (Shark) Market

Stocks and Shares Investment >> Invest In Stocks and Shares Beginner

Ten Basic Tips on How to Survive in the Stock (Shark) Market!

The stock market today is awash with the blood of investors who have been literally torn apart by the feeding frenzies of the Sharks that are ever roaming, and very prevalent in todays market place. Particularly if the investor is not forewarned of the dangers lurking or are unprepared and dive into the waters blindly. So how can you put the odds in your favor so you don't get eaten alive the minute you go dabbling in the pool?

Like any diver you need specialist equipment and knowledge, training and preparation before you take the plunge.

1. The first essential piece of equipment is a "Business Plan". This prepares you for the future as you will know your destination (goals), the results you want to achieve, and you are then prepared for any nasty surprises that might eventuate during your swim in shark infested waters.

2. Secondly know the "Risks" involved. Are you aware of your risk tolerance? Beware you are not out of your depth and putting your assets or yourself in danger.

3. Research the areas you will be moving into. Know in advance by looking up the relevant charts and fundamental information of your future targets.

4. Protect your assets by using insurance (Stop Losses.) This will minimise your losses and protect any gains you might have already achieved.

5. Be ever aware of your emotions particularly "Fear." For this will freeze you or cause you to panic. This will expose you to dangerous undercurrents and place you in unnecessary danger. Know your own strengths and weaknesses .Avoid feeding frenzies as you might end up being on the menu instead.

6. "Greed" will also cause you to venture into uncharted territory in the hope of finding more treasure. This is the time to stick to your preplanned path of safety.

7. Keep a constant check on your progress. Are you on track? Have you deviated from your preset course?

8. Know when its time to exit because of either having achieved your goals or because it is no longer safe to stay in the water.

9. Learn from your mistakes and profit by the experience of those who have gone before.Particularly those who have lived to tell the tale.

10. Lastly but most importantly know whether it is prudent or suicidal to enter the market. And have the patience to wait till the right conditions presents itself.

No doubt you will find more lifesavers as you venture into new unexplored territories and your survival instincts will improve on each trip that you successfully complete.

Remember to look out for the "Sharks" they are ever out there!

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