As an educator in the stock market I have dedicated my life to showing people how to retire wealthy no matter what their age, job or their life style.
I found that Chris’ goals are basically the same as my personal goals and that is to help people to make a difference in their lives both personally and financially. At Chris’ workshop I met his marketing manager. She asked me if I would be interested in writing an article on the stock market for the monthly newsletter for Universal Events as this month’s subject is on wealth creation. After considering this I thought I would write about the mistakes people make when investing in the Stock market, and how N.L.P. can make all the difference.
I have spoken to many traders, investors and students at lectures all over the world and have found five common mistakes people make when investing in stock and options. After listing these points below I have come to realise that by utilising N.L.P. in stock market trading you have the power to stay focused on your own personal journey in the world of personal investing. Right…
1. Diversification: Don’t invest all of your money at the same time.
Yes you can’t win if you’re not trading but I must emphasise the word diversification. When we invest in the share market we can have some of our money in stock, some in options or other investments, and some in cash so that our money is not exposed to danger all the time. If we diversify properly then we will have a much greater chance of coming out with a profit instead of a loss. Avoid putting all your financial eggs into the one basket and diversify in different areas. My view is to use the stock market to make money, and then park it in real estate.
2. Homework: Get educated and know your subject.
How many times do I hear the comment that I can learn it all in a book? Reading one book or attending one seminar is not enough. We live in a global marketplace that’s open 24/7 and if we don’t stay in touch with what’s happening around us then we will never progress forward in anything that we do. Study and read, then study and read some more. Learn to become an expert in your field, a student of the stock market always updating with the latest information. The old saying ‘readers are leaders’, is so true, as you are the leader of your own and your family’s financial future you must act accordingly. Taking all this into account there is still no substitute for education, doing your own homework, reading and forming your own thoughts and ideas.
3. Keep your trades to even dollar amounts.
If you trade in uneven amounts you can have more winning trades than losing ones and still end up losing money overall. You could win a small amount in 3 or 4 trades and lose a large amount in 1 or 2 trades, thus wiping out your complete trading portfolio. You must trade in even amounts to be successful in the stock market.
4. Who do you listen to for advice?
In my seminars I would ask the audience “who wants to earn over £100,000 per year?” Hands would then go up all over the audience. I would then ask them “who are you listening to for advice?” Why would you listen to anyone about how to make £100,000 per year if they weren’t already making £100,000 and doing it for themselves?”
Most people listen to friends and relatives or take the latest tip out of the newspaper as their form of advice. I teach people to be very careful where they go for advice. You have to become educated on the stock market, learning and then applying what you have learnt, to become an expert in the strategy of your choice. No one cares about your investments more than you do. While you are awake at night thinking about how best to look after your money, your financial planner is sound asleep. No one loses any sleep over your financial affairs, so you must look after it yourself as you are in charge of your family’s future.
5. Become an expert at one strategy.
Get to be an expert in the strategy of your choice. Become an expert at managing your own money, learning how to cut your losses short and moving your money into better moving stocks. When you evaluate a trade ask yourself, “What else could I do with my money to free up my time?” All traders need to be students of the market; continually doing simulated trades to stay on top of their craft. Practice, practice, and more practice if you are to be the best at what you trade. You don’t see Tiger Woods go into a competition without any practice. He practices his swing on a daily basis. Do at least 15 paper trades with at least 10 in a row being successful before you enter into trading the stock market.
There are two different sets of skills at work here. One is how to make money in the stock market of which this skill can be learnt and fine-tuned. The other is how to keep you money after you have made it which is a lot harder because this one lets emotion creep in, almost always being our downfall.
Friends, I know that these 5 points will help you further your investing future in the stock market. The utilisation of N.L.P. can only help you stay focused on your profitable financial outcome with a much greater positive result. Being able to take you subconscious to a level where you automatically do what is necessary to become profitable in your life. Since my workshops with Chris Howard I have not only been able to become more focused in business but my attitude toward trading has also improved out of sight.
I wish you all the success in your investing future and if you want any further information on StockCourse or our stock market workshops please feel free to email us or check out our web site.
One final note, always bet on the side of optimism, as pessimism will always fail.