How to make money from stocks is the question that moves many investors with a more aggressive profile.
After all, variable income can be the perfect place to seek above-average profitability.
However, before you start investing in the Stock Exchange, you must be aware of the risks and all the important details to avoid falling into the most common pitfalls in the market.
One is to think that you will make money every day and that you will get rich quickly by investing in stocks.
It is certainly possible to build equity by investing in the Stock Exchange, however, this can take time and it takes wisdom to invest in the best possible way.
So, be careful with promises of high profits on the Stock Exchange.
To shorten the path between mistakes and hits on the stock exchange, we have selected 3 fundamental tips that every trader needs to follow to be successful in the stock market.
With that in mind, now for the tips :
1 – Be Disciplined Every Day
Discipline should be part of the investor’s routine. The market only “rewards” those who are dedicated to following a setup method: the operational condition will give you a better chance of ending your days in profit.
Thus, the tendency is for you to start earning more and losing less. The trader who operates consciously, and has clear goals, tend to have good results in the long run.
So, don’t be shaken by short-term results. After all, not every day can be profitable. The trader who is charged with the obligation to make money every day certainly falls into a disadvantage in the market.
You must design your strategy and not that of the colleague who worked. This may be the best way to make money on the Stock Market.
You can even draw on other strategies, learn and analyze what could be adapted to yours. But be aware that the winning strategy for one trader may not be the best for another.
2 – Work, Develop and Be Faithful to the Setup
The investor must be clear about what he wants to do in the market, study the graph, and the fundamentals of the companies in which he will invest. The knowledge should compose the basis of your financial strategy.
And investors who do not dedicate themselves to studies and go straight to the practice have great chances of embittering losses.
Understand that investing in variable income includes real risks. So, you must manage them to minimize your chances of losses.
Trading in the financial market can be like a job, a profession. But of course, it is also possible to invest in shares in your spare time, studying and operating with little time per week.
But for that, you must determine a different strategy, based on the swing trade and not the day trade.
Many want to make a fortune overnight, the Stock Exchange is not a game. Like the ones, you find in Las Vegas, with blind bets and endless odds.
It takes patience and dedication to win in a volatile market. Investors who consistently win in the market share the habit of knowing how to divide the time between studying and operating.
Going straight to the purchased ticket at the home broker without a theoretical basis is like trying to ride a bicycle right off the bat – the first case may hurt more, as it will reach your pocket.
One of the recommended sources to prepare for is our educational channel for traders. By opening your account here at Rico, you will have free access to live classes with our professionals who have years of experience in the stock market.
3 – Conquer Your Positions
Even if you have money and it allows you to operate big, not using Stop can be a deadly mistake! The difference between trading and having money is so big that those who dare to confuse them can quickly give up making money from stocks.
In InvesTV rooms here at Rico, teachers seek to instruct beginning operators to operate small to gradually move up to larger operations.
Taking advantage of this tip, we will explain simply the two most common types of Stop: Stop Loss and Stop Gain.
The Stop Loss works as an insurance against possible losses, interrupting a trade that is losing money before the loss is greater.
To better understand, see the example below: you buy a share at R $ 60 and, according to your studies, believe that if it falls below R $ 55 it will only tend to fall more.
To protect yourself, you schedule a stop-loss order for R $ 55 at the home broker. If the price falls according to your analysis, your paper is sold and you control the risk of the transaction.