10 Ways to be a Better Investor
In This Week’s Issue:
- Upcoming Events – Webinars and Live in Vancouver
- Stockscores’ Market Minutes Video – How to Profit from a Stock Market Crash
- Stockscores Trader Training – 10 Ways to be a Better Investor
- Stock Features of the Week – Action Breaks
Upcoming Events – Webinars and Live in Vancouver on Tuesday
Monday April 22 6pm PDT – How to be a Successful Stock Investor
Stockscores founder Tyler Bollhorn will walk you through process for managing your stock investment portfolio. During this webinar, you will see how he scans the market for opportunities, evaluates risk and reward potential and follows his holdings for exit signals.
Click here to register
Tuesday April 23 7pm PDT – How I Trade the Stock Market - Vancouver
Live in Vancouver, UBC Robson Square
Join me as I take you through the lessons I have learned, the strategies I have created and the tools I have developed to trade the stock market for the past 30 years.
Click here to register (after registering the page will jump back to the Stockscores site with no confirmation but you are registered!)
Wednesday April 24 – 2pm PDT – How to be a Successful Day Trader
Stockscores founder Tyler Bollhorn will walk you through the components of running a profitable day trading business. During this webinar, you will learn the importance of trading well tested strategies, practicing good risk management and having a methodical process for finding and trading opportunities.
Click here to register
Thursday April 25 – 6pm PDT – Stockscores Trader Training Overview
Stockscores founder Tyler Bollhorn will explain the three trader training options being offered in May. Learn what these programs cover, who they are right for and what additional bonus training is available in May
Click here to register
Stockscores Market Minutes – How to Profit from a Stock Market Crash
You can make strong trading profits when the stock market crashes by focusing on the investments that go up when the market goes down. I discuss some of the things that can be traded but also important considerations for trading them. Then my weekly market analysis and the trade of the week on AMRS.
Click here to watch on YouTube
To get instant updates when I upload a new video, subscribe to the Stockscores YouTube Channel
Commentary of the Week – 10 Ways to be a Better Investor
The stock market is constantly evolving and every day I work to improve how I trade it. Year after year I use the same basic principles and methods, just apply them in different ways to suit the current market conditions.
One of the constants that never seems to change is how fear and greed guide the market action. Succumbing to either of these emotions often leads to financial loss.
Here are 10 things you can do to become a better investor and avoid these traps:
1. Use Strategies that Work
Your approach to the market won't have a hope if your analysis methods are not effective. There are many ways to analyze stocks, take one that you like and test it until you have confidence that it works.
2. Write a Trading Plan
Success has a better chance of happening when you write down a plan to get there. Make your plan include your rules for entry and exit, risk tolerances and a process for review. Adapt your plan over time as you find better ways to achieve success.
3. Manage Risk
Understand the risk in every trade you make and don't take risks that you cannot tolerate. If your exposure to loss is more than you are comfortable with you will inevitably break your discipline.
4. Limit Losses
You should always know where the exit door is in case something goes wrong. When you buy a stock, decide the point where the market will have proven your decision to enter wrong. If the stock falls to that price, get out. Don't let small losses grow in to big losses.
5. Blame Yourself
There may be a good argument for why a loss you have suffered is someone else's fault. The newsletter writer could have been wrong, the media could have been wrong, the government could have gone back on a promise, the company could be corrupt. Blaming others will never get your money back. You will not change the actions of others, you can only change your own. Therefore, blame yourself for everything that happens with your money and take steps to make it better.
6. Stop Falling in Love
The more you know about a company, the more likely you are to ignore the market's message. Companies want you to own their stock; the more investors that they get to own their stock, the higher the price goes. As a result, there is a bias to the information that you are exposed to, if you listen too much you may miss activity in the market that is telling you that something is wrong.
7. Practice Patience
Up trends start slowly so you have to be patient when stocks are trying to start a long term trend. The profit is in the patience, hold on to strong stocks so long as they are showing strength. When looking at a company, avoid a short term outlook that can mislead you about the long term trend.
8. See the Other Side of the Story
Everything you know about a stock may tell you to buy it and you may do so with complete commitment. But, always ask yourself, "Why is someone willing to sell to me at this price." If you understand their motivations for selling versus your motivations for buying, you can better determine who is right. Without an understanding of the other side of the trade you can not determine whether the other side is wrong.
9. Avoid the Herd
The crowd usually loses. When buying, look around at your fellow buyers. Are they well informed, smart investors or are they generally uninformed people watching 60 Minutes? Always try to be one step ahead of the herd.
10. Analyze Your Results
The market is always evolving, making constant evolution in your approach to the markets important. On a regular basis, analyze your trades and looks for patterns of self destruction. Make changes as necessary.