Learning how to make a fortune in the stock market is something that anyone can do as long as you have the correct foundation. Here are the seven stock market fortune rules that are the core principles of a very profitable trading system called phase trading.
Stock Market Fortune Fact: 75% - 80% of all stocks move in the overall direction of the market.
With most stocks following the overall market direction, why don't you let the market make you money? The easiest way to make a fortune in the stock market would then be to only trade with the long-term direction of the stock market. Don't try to fight the market, but let the market help you make you money.
Stock Market Fortune Rule #1 - Make faster and larger profits by investing with the market in both bull and bear markets. If you are not utilizing bear market to make additional profits it's like leaving money on the table.
Stock Market Fortune Rule #2 - Fully utilize the power of compounding to enhance your gains exponentially. You won't see the benefit on a single trade, but add up multiple profitable trades and you will start to see the power. Even Albert Einstein called the principle of compounding interest the "Eighth wonder of the world".
Stock Market Fortune Rule #3 - Invests only in stocks that have the largest potential for huge gains. Stick with high volume stocks that move in phases for the safest and largest profits.
Stock Market Fortune Rule #4 - Eliminate emotional buying and selling of stocks. This leads to buying and selling too early or too late, which is the biggest reason why people lose big in the stock market.
Stock Market Fortune Rule #5 - Don't over diversify your portfolio. This is one of the biggest mistakes that people do without realizing the harm that it causes. Your portfolio diversity should be based on risk vs. reward not just a pure number of stocks you want to have. Would you like to trade only the best super high performing stocks if for every $1.00 lost you would gain $4.00?
Stock Market Fortune Rule #6 - Let your winners run. This is the golden rule of successful investing. You might not think it, but it is the hardest part emotionally to follow. It's very easy to see a stock move up nicely. On the other side of the coin, how bad it feels when a stock takes a short-term stumble. Not fully knowing it will come back up or not. This is when it gets very difficult to keep your faith in a stock. If you sell now you could be missing an even bigger run right around the corner.
Stock Market Fortune Rule #7 - Sell your losers and don't dwell on them. As long as you are following your system and didn't let your emotions take over. Remember that no system is 100% correct all the time. Keep focused on the longer-term success of a system rather than individual trades.
If you precisely follow these seven stock market rules you can successfully eliminate the majority of the most common mistakes that traders make. With this information you should be on your way to making a fortune in the stock market.
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