Should you Buy Low – Sell high when trading financial markets?
How many times have you heard financial experts tell you that to make money in the markets “you need to buy low and sell high” well that may sound like a good idea but in reality the most successful traders do not do follow this advice and infact buying low and selling high is the quickest way to lose money.
Vince Stanzione is a self made millionaire and has been trading and investing for 26 years and he gives these tips
Whilst everyone likes a bargain, it’s human nature, he does not make money from buying bargains. Cheap stocks often appear to be bargains after a large drop but they often continue to fall. Never let anyone tell you they are cheap and “can’t go lower!!” companies can remain cheap for years or eventually go broke
Its far better to buy a stock that is doing well and is in an uptrend and showing strength rather than try and be clever and pick a stock from the bargain bucket. New highs can be filtered and identified with a simple charting package such as sharescope.
You do not need to be the first in or first out to make money – there is plenty to be made in the middle what I call the “white meat” leave the scraps to others.
Trade with what you see not what you think. Thinking in Trading can be an expensive luxury – you may think that a stock for example Netflix is overvalued and maybe you will be proven right eventually but if the stock goes from $50,60,$100,$200+ it’s in an uptrend and trying to go against that trend is a big mistake.
A final note, in financial markets we are always dealing in unknowns but what is known is the amount of money that is at risk, many traders spend too long thinking about how much they can make rather than what they can lose – with good money management you can control your risk so no one trade or investment will ever cause you to lose more than 1 or 2% of your total trading capital.
Want to learn how to but the odds in your favour and start making money trading and investing using a proven formula?
Vince Stanzione – has now launched a new course specifically for those based in the US to allow YOU to trade and invest. Maximum Profits In Minimum Time is designed for those that don’t want to be glued to a screen all day but want to take control of their investments and make money regardless of if the markets are rising or falling. Vince has been trading for over 26 years and shares his experiences in a simple to follow way with no jargon. The course covers how to make money in currencies, commodities, Stocks and indices.
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For rest of world please click here