Something you might hear in your life is that "stay away from that stock market, you'll lose all your money!" That is simply wrong. The only way you will lose all your money is if you go in uneducated. If you want to keep your money you stay away from high risk companies, you stay away from penny stocks and you learn how to analyze the numbers. You need to become the person of knowledge and if you cannot become that person and if you do not want to become that person than yes you should stay away from the market.
There are many books out there that will give you a perfect understanding on the right ways to use the market to your advantage. You need to understand that the market will fluctuate and you need to be prepared to be in the red aka be losing money. If you panic each time your stocks are down and you want out then you are not the right person for the market and your mindset is not going to allow you to wait out the losses and get to the gains.
I've managed over 12 million dollars in stocks and I can tell you that I've seen my fair share of Red but in the end all of my portfolios are profitable. I've never substantially lost any money because I look at all the numbers and I wait out any losses if I feel that they are temporary. There are occasions when you have to Stop Loss but in those cases most of the time its because of poor earnings or a failing company but really if you're smart you shouldn't be getting into those type of companies anyways.
The best way to beat the market is to creating as much knowledge as you can and put yourself in a position to win. Expect to be down at times but in the back of your mind truly believe that your stocks will go back up. Put yourself in a position to lose every penny financially and not go broke. You cannot rely on the money in the market, that's how people lose, they pull the money early and fail to achieve the desired profits.
Look at the stock history, in fact look at the entire stock market history and look how everything has changed over the years. It's your time to become the person of knowledge and power. There is a reason that so many people lose in the market and that reason is impatience. I remember my grandparents losing 80,000 in the market around 2002. Had they kept their money in this whole time they would have 150,000 extra from what they ended up with. You cannot pull your money out well it's down that is just dumb. Unless you are a day trader, which you shouldn't be if you are using your own money.
Stay away from penny stocks! trust me very few people are winning with these. It's not that it's impossible but the average person is not able to pick the right companies and if you're relying on someone else to pick your stocks then you are failing and you will lose. You are the one who needs the knowledge and ability to pick the right stocks. Read Benjamin Graham he was very smart and he gives you the right ideas!
Take a look at our blog http://topnotchstocks.blogspot.com/
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