Buy Low Sell High

by Tad

Most small time investors playing the stock market lose.

It's just not easy to make money in the stock market unless you really know what you are doing. Unless your day trading the cost means nothing.

If you pay $5 to $8 to make 2 trades a week it is not a big deal what you pay. If you’re trading over $20, and making up 100 trades a week, then cost is very important.

You need to spread you risk right and not put all your eggs in one basket or in one penny stock. The best stocks I think to invest in are 25 to 80 dollars a share. This is where a lot of the smaller investors go wrong.

You need to look at charts of the stock you are thinking of buying. You need to look at that sector of the stock and you need to look at the major indices and see if they are weak or strong.

You want to buy at support levels and sell when the buyers come back to the market. Don’t buy because the stock is running up. That’s the key time to be selling. That’s why small investors lose because that’s when they seem to buy. Then just don't know how to use the charts and the tools that are available to make a good decision.

It's a bit obvious the bu low sell high thing, but you need to be able to tell what is high and what is low.