12 Basic Stock Investing Rules Every Successful Investor Should Follow(2)

There are many important things you need to know to trade and invest successfully in the stock market or any other market.

12 of the most important things that I can share with you based on many years of trading experience are enumerated below.


3. Every market or stock that goes up will go down and most markets or stocks that have gone down, will go up.

The more extreme the move up or down, the more extreme the movement in the opposite direction once the trend changes.

This is also known as "the trend always changes rule."


4. If you are looking for "reasons" that stocks or markets make large directional moves, you will probably never know for certain.

Since we are dealing with perception of markets-not necessarily reality, you are wasting your time looking for the many reasons markets move.


A huge mistake most investors make is assuming that stock markets are rational or that they are capable of ascertaining why markets do anything.

To make a profit trading, it is only necessary to know that markets are moving - not why they are moving.

Stock market winners only care about direction and duration, while market losers are obsessed with the whys.




By C.C. Collins