12 Basic Stock Investing Rules Every Successful Investor Should Follow(3)

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.


5. Stock markets generally move in advance of news or supportive fundamentals - sometimes months in advance.

If you wait to invest until it is totally clear to you why a stock or a market is moving, you have to assume that others have done the same thing and you may be too late.

You need to get positioned before the largest directional trend move takes place.

The market reaction to good or bad news in a bull market will be positive more often than not.

The market reaction to good or bad news in a bear market will be negative more often than not.


6. The trend is your friend.

Since the trend is the basis of all profit, we need long term trends to make sizeable money.

The key is to know when to get aboard a trend and stick with it for a long period of time to maximize profits.

Contrary to the short term perspective of most investors today, all the big money is made by catching large market moves - not by day trading or short term stock investing.





By C.C. Collins