Investing in things has happened since man began walking the earth. Since the beginning, investors have made the same mistakes, over and over again. As Verified Investing forces transparency on Wall …

Investing in things has happened since man began walking the earth. Since the beginning, investors have made the same mistakes, over and over again. As Verified Investing forces transparency on Wall Street, we see the need for clear, concise rules to help investors excel and profit. These investing tips will help all investors from beginners to advanced.

1. Have A Game Plan For Your Investing

Too many investors start investing without any rules or objectives in mind. This leads to confusion, fear, greed, over trading and eventual stock losses. Instead, before you make your first trade decide on what you wish to invest in? How much money will go into each investment, how much profit you are looking to make and what is your maximum amount you are willing to lose. Literally, write this game plan down. Make sure you decide if you are looking to trade ETF's, stocks, small cap stocks, mid cap stocks or large cap stocks. How many positions are you willing to hold? How much money will you invest in each trade? This is incredibly important because many investors over leverage themselves in one or two trades.

2. Have Expectations That Are Realistic

We have seen too many investors believe that they will make 100% in their first month of investing. This is not a realistic expectation. Any investor that puts themselves in a position to make that much in a month is gambling. In other words they are taking too much risk. Ultimately, the stock market will take your money if you do this. Instead, realize that investing is a marathon. If you make 5% a month it is 60% a year. Then do that every month going forward and compound it. Within years, you will have made millions. Ask any great investor like Warren Buffet and they will tell you the key to long lasting wealth is slow and steady. Keep risk lower and the money will flow over time. Many average investors look at the stock market as a get rich quick scheme. These are the investors that will go broke.

3. Ignore The Hype

Wall Street, analysts, the financial media and often times your friends and family will say things that cause an emotional reaction. They will make you question your investment decision. Ignore this. Wall Street purposely hypes stocks at highs and creates fear at lows to get the small investor to react in the opposite way they should. In addition, the financial media focusses on the breaking news. This could be constantly talking about a stock hitting an all-time high or market panic at the lows. This then is seen my friends and family and freaks the public out. If you have a thesis on why you invested in a stock, unless something material has changed, stick with it.

4. Follow The Best, Learn From Them

Every average investor needs to have a mentor or a pro they look to for advice. Make sure you see proven track records of performance by a 3rd party. Too many pro traders and financial websites track themselves. This is like the fox watching the hen house. They often times fudge their track records and make these crazy claims to lure unsuspecting investors to buy their subscription services. Instead, look for a Pro Trader that lets a 3rd party website track their trades. Verified Investing was created specifically to police the industry and let investors find the best by verifying every trade and compiling audited track records. Investors need to be aware there are plenty of snakes out there and if you are going to put thousands of Dollars in a trade, make sure the pro you are following is verified.

5. Accept A Loss

Far too many times investos let their ego get the best of them. They let a losing trading get out of hand because they cannot admit they were wrong. Before you ever enter a trade, have a max loss (stop). No matter what, abide by it. We have seen hundreds of investors and traders make money on 10 stocks only to lose all their gains on one losing trade. Not even the best Verified Investing pro trader avoids a losing trade. It happens, accept it. The key is the ratio you win with. If you look at your own track record and see you lose 3 times out of every 10 trades, don't be fearful of those losses, it is just your average playing out. Dump it and move on to the next as the winners are on the horizon.

6. Learn To Read A Chart

By no means do you need to learn how to read a chart as well as the best pros on Wall Street that are paid millions of Dollars a year, but you should have a general understanding of a stock chart. Understand how to find double tops, double bottoms, bull flag patterns and bear flag patterns. Be able to look at a chart and see if the stock is overbought in the near term or oversold. This can help you make an educated decision on whether to buy or sell.

7. Cash Is A Position Too

Almost every investor we have seen believes they need to be 100% invested 100% of the time. This is a horrible thought process. In certain market times, cash is by far the best position to be in. However, investors have this urge that they are always missing out. Try and control this urge for a few reasons. One, being in cash is far better than losing money. Two, having cash on the sidelines enables investors to react when they see a great opportunity. The worst feeling in the world is when an investor sees a great trade pop up but has no money to act on it. Remember, fear and greed create opportunities every month of every year. Be patient and wait for the next one. Do not force a trade just to be in the action.

8. Once You Have A Full Position, Never Average Down

Investors and their ego. It seems to always be a problem. Before you take a trade always know the maximum you are willing to invest. If you buy half that position to start, then it is OK to buy the second half if the stock declines. However, if you buy the full amount you are willing to invest and then the stock declines, never buy more. This happens far too often and the stock continues to decline, creating a massive loss. As it was said earlier, have a max loss and abide by it.

Verified Investing is proud to police the online investing and trading world. We verify every trade and compile verified track records for 1000's of Pro Traders. In addition, our Users ONLY reward a Verified Trader if they get winning trade alert information. Our goal is to clean up the industry and help investors find Pro Traders they can trust and follow, maximizing profits in the stock market.

By Verified investing