Rules should be known by Investor before jump into Stock Market

Rules should be known by Investor before jump into Stock Market

  1. The market and stocks go up AND down, Not up OR down.
  2. Stocks are nothing but letters and numbers, they don’t know who you are and at what price you own them.
  3. There is a big difference between a company and its stock! Many companies continued to be great companies for months, quarters, years, after their stock peaked. And also vice versa, they are a ton of shitty companies that have great acting stocks. Would you rather own a good company or a good stock?
  4. You don’t know if something is a good buying opportunity until you sell it.
  5. If you believe in BEAR RAIDS then you have to believe in BULL RAIDS.
  6. It’s never DIFFERENT.
  7. A good company or a good stock is one that you buy and it goes higher in which you profit.
  8. For some, being a long term investor, just means: I own the stock, its down, and I don’t want to take the loss.
  9. When the stock you own is down, you already have a loss, you just haven’t realized it.
  10. Stocks go up when you have more buyers than sellers. Stocks go down when you have more sellers than buyers.
  11. Tops start from 52 week highs, when things look great.
  12. They are a million ways to make money in the market; there is no right or wrong way if your P&L is positive.
  13. Never be so quick to say that you will buy a pullback before you get the pullback. The little beautiful sweet heart might not be the same girl when she gets back after 2 years working at Zouk
  14. Price targets are foolish; to say I won’t sell a stock until it reaches a certain level is STUPID.
  15. Stop Loss Target is the most important and it should be the loss you can take in one investment
  16. Overbought and oversold are two different animals. Fading oversold levels works a lot better than fading overbought levels.
  17. When a stock is going down, don’t blame the shorts, blame the sellers, the shorts have 1/10th if that of the buying power that long funds have.
  18. Every major pullback, starts as a -“it’s consolidating great”, “buyers are in control”, “it’s just resting,” “it’s an orderly pullback.”
  19. What the so call Gurus do is more important than what they say or write on some blog.
  20. Don’t try to make up for all your losses with one trade, you will fail.
  21. YOU CAN ALWAYS BUY STOCKS BACK.
  22. Do not let your position in the stock cloud your judgment, if it is, then go flat (sell it) then analyze it, you will see things differently.
  23. This game is not about being right or wrong, it’s about making money. Many rather lose money than admit that they are wrong.

BY FRANK ZORRILLA, “Stock Market Commandments“,

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