Saturday, December 5, 2009

How To Invest In The Stock Market Step By Step

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If you have been following my blog for a bit now, you'll know that I've been advocating a how to invest in the stock market step by step approach. I believe that you've got to break down every single step you take each time you decide what stock to buy, how much of it you decide to buy, when you decide to sell it and even goes as far as having a checklist to make sure you don't forget anything. You've got to be an expert on the strategy that you employ. Let's take the CANSLIM investing strategy. I think one of the first things you need to master is determining the overall market direction. I've broke down everything involved in figuring that out and put each step in the form of a checklist. Now that I have a handle on that, I will start taking the next aspect and breaking it down and doing the same thing.

The key to making money in stocks is perfecting a successful stock market investing strategy. There are plenty of people who have been extremely successful in making a ton of money investing in stocks. The key is to pick someone who was wildly successful and copying their methods. Even when you do that though, you need a roadmap to follow. That's where your investing checklist comes into play. It will tell you exactly what to do, when to do it and how.

Taking the emotion out of stock market investing is also an important aspect in locking in winning stock picks. If you are winging it, you can never be sure on exactly what is working. By having pre-thought out exactly what you will do at each step in the investing process, you'll have a steady hand in your investment decisions. And, when the market is telling you one thing and the media another, you can know what you need to use as your guide. Your non-emotional, boring little old checklist.

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