A very common question asks by a newbie stock trader/investor after knowing the risk involved on stock market. From my previous post, I’ve mentioned that our market will correct soon… (and it does...) Then now, most of the traders have twice thinking if is it now the time to come back at the arena?

We’ve seen consolidations at range of  4100~4200. But there’s a possibility for another correction for the upcoming week, and as per our chart shows… it’s not strong enough now to support the range, however, it could be reversal and could break 4300~4400 resistance.

       ( -tips from a very respectable man dated May18,2011 )

But all of this data is very important to us (newbie)? YES... since must of the newbie traders are reliant to hot tips and so on from their broker or seniors on the arena. Trading shares/stocks is highly tied-up with human emotions, regardless how skillful trader you are. As a Filipino, the fear is always there, the fear to lose our hard earned money. Bigger players almost perfectly knows how a newbie behaves, with today’s sophisticated software that could get all information needed they can easily manipulated the green and red lights. Our common mistake is.... whenever stock prices are going DOWN, We sell because of FEAR. Then the big players, knows these and start ACCUMULATING when prices are all down and newbies panicked.. 

So how to avoid all this traps? Be simple and stick to the YOUR PLAN. You must determine your goals; how much my capital? What returns I wanted? How long should a hold it? And remember the golden rule of thumb is to buy shares/stock in a companies whose the business nature you understand, else then you might be investing for a wrong reasons.

Timing is the key, no matter how hard to try, nobody nailed it perfectly. Don’t join the trading arena if you’re not ready to lose money occasionally. Be an investor instead and look for long terms if your not really sure what your up to. And if your using only your extra funds in investing the stock market, then there's no need to hurry then isn't?

Let your money work for you.
God Bless & Good Luck.