Stock Trading Strategy: 3-Book Bundle – Stock Market Investing for Beginners + Day Trading for Beginners + Penny Stocks + bonus content: Trading Psychology of Millionaire Investors pdfdrive com

 
Avoid following Expert Advice all the time
When you are a beginner, you may find it helpful to search the net for pieces of
advice coming from the so-called “experts.” This is a common mistake because
not all of these “experts” are real experts. These days, it is fairly easy to spread a
word and promote one’s self online. In fact, if you are good at marketing, you
can easily project an image that you are an expert stock investor even if you
have not invested in a single stock in your life. It is also worth noting that even
the real experts also commit mistakes from time to time.
The best way to avoid relying on expert is to develop your own understanding of
the stock market. After all, what separates an expert from a complete beginner is
that an expert has his own view of the stock market and is able to support his
view with reasonable defenses, while a beginner usually relies on what other
people say. Of course, this does not mean that you should never take the time to
read or listen to what the experts have to say. Rather, this only means that you
should take every message or advice with a grain of salt. Instead of relying on
what experts have to say, you can use their views as additional references to help
support your own investment strategy.
 
Beware of the Pump and Dump Scheme
The pump and dump is a common scheme that you should watch out for.
Unfortunately, although people are aware of it, many still fall for this fraudulent
scheme. So, how does it work? A business or person who owns stocks promotes
his stocks and spread positive rumors about them. This is a promotional hype
that oversells the value of the stocks. This will tend to draw more attention to the
stocks. In turn, this will increase the price of the stocks. When this happens,
other investors will offer to buy the stocks thinking that they are a good
investment. Now, after the sale of the stocks, the promotion and bad rumor will
stop. The price of the stocks will then begin to dwindle down. After all, the true
value of the stocks is lower than its value or price during the promotion. The end
result is that the seller of the stocks makes a profit, while the buyer possesses a
stock whose price is uncontrollably falling down.
Take note that the pump and dump scheme is not a completely bad thing. As you

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can see, you can take advantage of it and earn a profit. The key is to buy the
stocks before or immediately right after the initial part of the pump and dump
scheme. You then have to sell them just before their value begins to drop. The
best way to do this is to sell the stocks after you see even just a small amount of
profit. Do not wait for the promotion to stop. After all, such is outside your
control.