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DAR Wong: What’s The Greatest Trading Folly?
Aspire, Thought Leaders | 31 March 2015
By: DAR Wong
Articles (1) Profile

Trading in the stock market is believed by many to be the easiest money-making venture. Traditionally, little knowledge was required to invest in the stock market – most common folks depended on hearsays, brokers or newspaper columnists for stock advice.

For those who were lucky, the stocks that they invested in appreciated in value and they would sell them off. The unlucky ones would often not realize the consequences till it is too late. The realisation usually only hits them when they sell off the stocks at a much lower price than they had bought at, which sometimes costs at least a few months worth of salary.

So what is the main problem that most of retail investors have?

In a nutshell, I realised that many retail (and often ignorant) investors engage in random trades. It is as good as throwing your hard-earned money into the deep sea if you enter the stock market just based on someone’s opinion without proper research and contemplation.

It is thus important that retail investors such as yourself have a trading system to adhere to. Here are some tips on how you can formulate such a trading system that will help you trade safely and with greater confidence.

Tips for Retail Investors

Firstly, you need to conduct some proper and substantial technical research about certain companies’ stocks. This will allow you to lean on stocks that may be prone to appreciate in the next few days. More often than not, this will result in profitability, especially when you ride on a upside trend of the stock price.

However, this trading tactic is almost always feasible only in short-term investments and stocks should not be held for more than eight days. Next, you need to learn how to read a company’s fundamentals and set a stop-loss order for all your trades.

This means that you have to set a price that you would sell to ensure that you do not lose too much in that trade. Similarly, you have to set a certain target price that you will sell at just so you would not get too greedy too.

Most successful investors practice excellent risk-control to maximize profits while minimizing losses in any case if they are wrong in their predictions.

Trading on the stock market is a game of balancing money and skills. It is not a sure-win thing but if you can maximize your profits when you are right and minimize your losses when you are wrong with proper risk management, it will reap decent returns.

After many years of hearing agonizing stories of stock traders, I have successfully modulated a trading system and wrote a book about it – Living Daylight in Stock Market: Monetizing Your Profits in 8 Days. I have introduced the programme in a few institutions across Singapore and Malaysia and received instant track records within the same day.

My book will teach you ways to spot profits from potential companies in the stock market while not spending too much time scanning the entire public listing.

Click here now to download your free preview of DAR Wong’s book. Discount code inside!

DAR Wong is an active market trader, registered fund manager, educator and author.

Please click here for more information about this author.

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