How to Make Money in the Stock Market

To achieve success and lots of money in stock market, you either have to become a financial guru yourself or to get professional help from a stock market mentor or a real successful financial expert. They will teach you good stock market principles on how to make money in the stock market. Stock market is such an unpredictable and roller coaster place that there is no place for half-expert or financial pretenders.

The naked reality is that only a small portion of trained and savvy investors rake in disproportionate big amount of return, many times at the expense of the other investors. But these few people know how to make money in the stock market. Is it not a disparagement to “Wall Street expert” professional title when a number of these so called “expert pretenders did not make a killing nor even achieved a breakeven in the investment.

You Need an Investment Strategy

A lot of investment strategies like the growth stocks investing are reputed to be risky. Momentum investing or day trading strategies are typically recognized to be very risky endeavors that can dissipate life long savings over night.

Indeed there is no such thing as free lunch. While those riskier strategies can yield high gains in relative short term, however in the long run, a risky method is in all likelihood to make a lot of individuals poorer rather than richer. Gigantic short term gain is not the way on how to make money in the stock market. It is simply a dangerous stock market bait to entice the inexperienced investor into the market. Desiring for that quick satisfaction of big short term gain overnight via speculation is just an ideal ingredient for a disaster ahead.

Value mutual funds are generally reputed to have lesser unpredictability as opposed to growth mutual funds. A lot of industry and academic┬áresearch have revealed that value stocks as a group did so much better in fact far better as compared to growth stocks in bear market. A lot of technology and internet now tagged as “growth stocks” lost 90% to 99% of value in just a short period of time after 2000 while a host of value stocks soar during the same period of time. Indeed, investment in value mutual funds is the way on how to make money in the stock market.

Truth to tell, the single most significant element to achieve high investment performance in the long run is to keep margin of safety of an investment portfolio. No less than the financial guru Warren Buffet once quote

Rule No.1: Never lose money.

Rule No.2: Never forget rule No.1.

This financial dictum should guide investors so they can rake in more profit.

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