Buying and selling stocks – Patience is a virtue
Being one of the most important skills of an investor or a trader is patience. You have to know how to control your impulses rather than taking action emotions. Patient traders and investors do homework – they have accurate access and exit times, and they stick with them. Stick to your strategy is the most important. The reason you did the research, you take the time to formulate a strategic reason, must now follow it.
First of all, choose the right stock
It is important to remember that there are many different stock opportunities, there is no need to seize every one. You want to make sure that you fit in your trading or investment objectives. If the stock you choose does not meet your criteria, be patient and find a new one. There are always other opportunities.
Waiting for Your Entry Point
Once you have done the research and selected the entry point wait. You may expect the stock to fall quickly to your entry point, but the opposite price goes up. do not panic. Just because the price does not mean it will not fall. Do not enter your planned entry point because you are afraid you missed the transaction. If you enter above, you will lose some of your potential profits. Be patient. The stock will eventually fall. Take some time to remind yourself why you decided to start your entry point.
Wait for the Right Time to Sell
Once you have bought a stock, you must know how to patiently wait for the right time to sell. All traders / investors must fight the impulse to sell too early or too late. If you are a long-term investor, it is important to be patient, so when the market starts to fall or return to the top of the market, you will not be impulsive to sell. This usually leads to losing your money.
If you are a short-term trader, you must also be patient. Even if short-term traders hold their stocks for short periods of time, they must know how to tolerate waiting for the best time to sell. Early sales can not make rapid profit growth. The same approach is to hold a stock for too long and hope it will eventually rise if it has not. Do not turn your deal into investment. Accept your loss and go out. Most importantly, learn from your mistakes. Waiting for the right entry and exit points is the key to every successful trade / investment.