I've seen millions of people share insights, charts, and just about everything else. Here are 5 things I recently learned that will help me become a better investor.
1. Someone is always on the other side of your trade.
A favorite moment comes from the Apple stream. Someone writes "$AAPL die $90 coming" and seconds later another writes "$AAPL $105 coming." Think about WHY someone else would want your next trade.
2. You have to have a game plan, or a system, or a strategy.
I follow a lot of good traders and investors. 500 at least. One thing they all have in common: they know how and when to sell. That could be their risk tolerance. Or their system. Just know when.
3. Technical analysis is real. And it drives markets A LOT.
The stock market is driven by humans and computers that are programmed by humans. We're a pattern recognizing species. Patterns in the market repeat, illustrate psychology and show supply/demand.
4. Always do your own research.
"If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand" - Peter Lynch Never buy without your analysis.
5. Don't chase. Ever. Turn your computer off if you have to.
When a stock is spiking, and you've always wanted it, that's when it's hardest to avoid the mania and wait. Chasing a stock means you bought it near its highs or because of "hype." Avoid this.
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