There are many books on investment written out there that will give you a perfect understanding on the right ways to use the market to your advantage. Before you even invest your money, you should know that the market will fluctuate and you need to be prepared to be in the red and losing money. If you are someone who panic each time your stocks are down and you want out then you are not the right person for the stock market and your mindset is not going to allow you to wait out the losses and get to the gains.
I've invest in stocks and I can tell you that I've seen my fair share of Red but in the end all of my portfolios remains profitable. Despite those nay saying whenever Mr. Market have a large falls, I have not substantially lost any money because I look at all the numbers and I wait out any losses if I feel that they are temporary. However, there are occasions when you have to Stop Loss but in those cases most of the time its because of poor earnings or a failing company but really if you're smart you shouldn't be getting into those type of companies anyway.
One of the best weapon to beat the market is to create as much knowledge as you can and put yourself in a position to win. Expect to be down at times and it is natural but in the back of your mind truly believe that your stocks will go back up. Put yourself in a position to lose every penny financially but not go broke. You cannot only rely on the money in the market, that's how people lose, they always pull the money out too early and fail to achieve the desired profits.
Study and look back at the stock history, in fact look at the entire stock market history and look how everything has changed over the years. If you are not making money till now in investing, it's time to become the person of knowledge and power. There is a reason why so many people lose their shirt and pants in the market and that reason is impatience. I remember my grandparents losing 80,000 in the stock market around 2002. If they had kept their money in the stock market this whole time they would have 150,000 extra from what they ended up with. You cannot just pull all your money out just because it's down as that is just dumb. Unless you are one of those reckless day trader, which you shouldn't be if you are using your own money.
Always stay away from penny stocks, trust me, very few people are winning with these. It's not that it's impossible but the average person is not able to pick the right companies and if you're relying on someone else to pick your stocks then you are failing and you will lose. You are the one who needs all the knowledge and ability to pick the right stocks. Read the book on Benjamin Graham, he was very smart and he will gives you the right ideas!
