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There are traders in the stock market that almost always make money. With proper knowledge and principles, the stock market is a place where you can dramatically increase your wealth. In this article, I will share with you, some of what it takes, for great success in the stock market. What ultimately will decide your overall success is knowledge, and how to interpret it marketwise. Let us start out with the most important rule in trading, which is keep your losses small, also known as, cutting your losses short. I can not emphasize enough, the importance of this rule. As an example, your strategy could be to always sell your stock if the price drops 10% from the buy point. I will usually sell a stock if it drops 5-7% from the buy point. If you implement this rule, and are right on about 50% of your stock picks, you will most likely make a lot of money. It is important never to underestimate the importance of psychology, when it comes to trading or investing. Emotions such as fear, greed, and hope will cloud your judgement, making the ability for sound trading decisions, next to impossible. The very best traders can enter a market, or exit a market position with little or no emotion. They have the ability to think clearly throughout the entire stock market process. This is a huge factor, when it comes to overall results. To achieve big success in the stock market, or any other trading venue, it is important not to follow the crowd in most instances. A key characteristic of a great trader is the ability to think in individual terms. Great traders and investors think, and then act, much differently than the average ones. That is how they make fortunes. As an example, most people do the absolutely wrong thing at major turning points in the stock market. They tend to buy, at or near the top, and sell, at or near the bottom. A perfect example of this is early 2000. A lot of people bought a lot of stocks, just as the market was topping, and lost incredible amounts of money. The very best stock market operators knew the early warning signs, and were safely out of the stock market, with huge profits, well before the market really started to crash. Learn from the true legendary traders and investors, such as Jesse Livermore, William J. O'Neil, Richard Dennis, and others. Read their books, study their strategies and methods. Implement what you learn into your own trading and investing. Your overall results will improve dramatically. You might even make a fortune. Hi, I'm Gary E Kerkow, founder of Tradingmarkets4u.com. This site provides information to help traders and investors become successful. I have over 20 years of trading experience including stocks, futures and options. I implement the strategies, methods, and psychology of the world's best traders and investors. This includes Jesse Livermore, William J O'Neil and others. Visit my website at http://www.tradingmarkets4u.com
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