The Most Important Things I Know About Stock Trading

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The Most Important Things I Know About Stock Trading

Tuesday, July 3rd, 2007 Subscribe To Our Feed

I started trading stocks about 10 years ago. In that time, I made millions of dollars. But it wasn’t easy when I first started out. I lost a lot of money by following a steep learning curve. What follows are some of the most important tips I can tell you about how to make money trading stocks.

Don’t Get Fooled by Randomness

What this means is that too many times people forget about the random aspect of price movement of a stock. I’ve known people to think that they’ve built killer stock trading systems lose all their money because their systems weren’t based on solid cause-effect relationships. In other words, people sometimes mistake getting lucky for being good. On the other hand, the opposite is also true. Even with a solid, money-making stock trading strategy, you will run into cold spells in which you lose money. There isn’t a system out there that has no draw down. Learn to tell the difference between luck and knowing what you’re doing when it comes to trading stocks.

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