- December 12, 2021
- Posted by: Robert Brown
- Category: Investing
As far as stock market basics are concerned, this one is key. If you really want to turbo charge your returns and change your life drastically, you need to have complete control. Not having control over trading methods catches a lot of new traders in their first market cycles or two. They don’t fully understand how to behave in certain market conditions.
Maybe they have made a ton of money during a roaring bull market, and can’t see the writing on the wall fast enough when the market turns. We all know people who have lost a lot of money during bear markets. I did before I figured out how to protect myself. Only when I lost a lot of money did I learn the painful lessons. It’s your choice whether you repeat my lessons or bypass them.
The old ways of doing things needs to change if you are in your first market cycle and a sea change happens. What works during bull markets will get you busted out of the game during bear markets…make no mistake about it.
Market turning points throw up many opportunities for strategic adjustment and further profits. How do you use margin? How much of your account to you leave invested? Do you look for shorting opportunities? Do you sit completely on the sidelines? These are critical stock market basics to master.
When you have control over the way you trade in all market conditions, then the world truly is your oyster. Not only will you make out like a bandit during the good time, but you’ll make even more during the bad times by simply recognizing they are bad and switching tact.
So, make no mistake about it…learn the differences in strategies that should be applied during bull markets and bear markets. In addition, learn what market turning points are and how to identify them. When the tide goes out, all boats sink eventually. When you learn these fundamental stock market basics…then you will make no mistakes that can bust you out of the game!