Stock Market Basics

Stock Market Basics Designed For Stock Market Beginners

Stock Market Basics Part 1: Problems are bad and should be avoided at all costs.

The Components of Stock Market Basics.

As a child during your school years, You spent your days solving arbitrary problems imposed by uninterested authority figures. The authority figures could have been your school teachers, academic tutors and even your parents.

. However, for anyone to reach their full potential as a human being and as a stock market trader they need to have problems appear in their trading activities that require their undivided attention and stretch their self limiting believes.

Only after they work through their problems and allow their left and right side of their brains to synchronize, do their experience eureka and find the solution well fitted for their individual problem.

What we have to unlearn as we go through life as traders, is that each demon, which we as traders see as a problems posses the seed to mastery.

Whether your problem is over trading, taking profits too early, not adhering to stops, the fear of pulling the trigger, or not sticking to your trading plan, the problem only appears because it needs you to pay attention to a part of self that needs some trading.

Lets take my trading demon for an example.

I love taking profits. Sometimes, so early that I kick myself when the stock rallies an additional $2 dollars after my premature exit, leaving me with a mere 30 cent profit in the stock.

For a long time, I would chase the stock, which meant making rash decisions and violating my trading plan. As you can see, the demon does not come alone, it brings other mates along to play.

Going against my trading plan was at times rewarded, I would make the extra $1to a $1.50 in the stock, however, more often than not I would end up losing the initial 30c profit that I had made and sometimes even more.

We provide stock market tutorials onThis kind of trading pained me, because I knew that I could spot a trend earlier than most traders, however, because of my impatience I always wanted to get out, before the real money was to be made.

This kind of trading went on for about a year, and during this time, I would successful make money for a month, and then the following month I would give back all the money I had made in the market the previous month and more, leaving a huge hole in my trading account.

Eventually enlightenment came upon me, I experienced the eureka moment. Archimedes is said to have experienced many eureka moments. While I didn’t jump out of my bath tub and run down the street naked and shouting “I GOT IT! I finally understood that I needed to enter my stock plays with minimum amount of shares, wait until the move had finally developed and then load my trade to full position, just about the time the stock was ready to make it’s move higher.

If I hadn’t experienced the pain created by my problems I would have never come to that enlightenment, or solution which was so personal to the problem that I was experiencing.

You might be reading this and think, but of course, anyone would know that you never enter a trade with your maximum allowable share size and that you should never chase a stock, however, during the beginning or my stock trading career, I never fully understood this lesson.

It was only through the pain of losing money and the constant struggle with the problem did the solution appear.

Learn to love your problems, because they provide the seed to your trading success. Cherish, embrace and be thankful for your problems that you face, because if you pay special attention, those same problems become your seeds to greatness and are also leading you down the road to mastery.Embrace Stock Market Basics and realize that they will eventually make you RICH.