5 Market-Beating Strategies Every Stock Trader Needs to Know in 2021

Both investing and trading have always been one of the best ways to make money and earn financial freedom. However, both of these things require a lot of knowledge and attention, as well as dedication and persistency, which unfortunately is often overseen.

When people want to invest, especially beginners, they are easily becoming distracted and blinded by the prize, which is of course money.

We can’t deny that money are the most important resource a person can have nowadays, but to get them, you have to do some sacrifices.

In this case, the sacrifice you need to make is time, as learning how to trade and become good in the stock ecosystem will take years of dedication. Thankfully, we have the internet, so learning new strategies and asking for advice is now easier than ever.

In this article we’ll list five market-beating strategies that every stock trader should know, so if you are looking to expand your knowledge in this field, now’s the right time to do so. Let’s take a look.

1. Never try to “FOMO IN” into uprising trends

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“FOMO” stands for “Fear of missing out”, and it’s something that even experienced traders will sometimes feel. Everybody wants to get richer, everybody wants to increase their profits and make a successful trade. But, you should never allow this feeling to take over. Wisdom and experience are the two most important things, so never FOMO into uprising trends.

A huge green candle is always very attractive, and most of us like to believe that the next few candles will also be green, just to be surprised with the fact that they’re not. And, this leads us to our next part, which is never investing without doing your own research, but before we get into that, feel free to learn more at beststocks.com if you’re willing to do some research and start right ahead.

2. Always avoid investments that aren’t backed up by your own research

We all have that one friend who tells us about the next big thing, and although that’s not a bad thing at all, it’s often a way to lose money. Even if you decide to take their advice, at least do your own research on what you’re investing in.

I’m not saying that successful recommendations never happen. Sometimes you hear that a certain stock will explode and you buy it, and then it really explodes. But, there are many times when it does the exact opposite, and because of a pretty obvious reason as well. Then you’ll feel pretty bad because you didn’t spend a bit of time to read what’s actually happening with the company or with the stock you’re buying. Fifteen minutes of research can save you thousands of dollars, so why not do it?

3. Completely eliminate emotions from investing or you won’t be successful

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It may sound strange, at least at first and to most beginner investors, but emotions are your number one enemy in this sphere. The reason for this is simple. When you get emotionally attached to money, you they become your enemy instead of your friend. If you “lost” on your last trade and now you’re looking to angrily “double” what you’ve lost, you’ll only lose more money.

Investing is a very thought-heavy process. It requires you to think. It requires you to have a clear mind. Not a mind that’s clouded by anger or greed.

I’m not saying you should not feel bad after a trade that didn’t go in your favor, but don’t let it affect your next ones. That’s pretty bad to do. Try to control your emotions and even if you didn’t start out well, if you incorporate this advice you will be able to come out victorious, or should I say profitable at the end.

4. If you’re a beginner, it’s better to go for index funds instead

Investing in an index is relatively safer and requires less knowledge. This is why we recommend that you start out by investing in an index if you are a beginner stock investor or trader. Even if one company in the top 500 ends up doing a wrong move and losing money, the rest will keep raising, so your investing portfolio won’t drown in failure.

This takes us to our final strategy, which is diversifying your portfolio as much as you can, because we all know the saying “don’t keep all of your apples in the same basket.”

5. Diversify your portfolio as much as you can

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It’s a good thing to be very passionate and full of hope when it comes to the success of a certain company or a stock. It’s even better for all that to end in success for you. But, there’s also the risk of losing everything if all of your investments are into one thing, and that thing ends up falling hard.

This is why we recommend diversifying, and that’s why investing in index funds is such a good choice. Also, most beginner traders don’t know when it’s time to sell, so they sometimes may hold the stock while it’s falling down until it reaches zero.

Conclusion

Investing and stock trading is not as black and white as most people think. It requires a lot of strategic thinking, and most importantly, eliminating your emotions from the process. In today’s article we listed some of the best things that a beginner stock trader needs to know, so if you follow these your chance for success should increase.

The way some people invest shouldn’t be the way you invest. Every trader will have a different experience and everyone should do their own research before they put any money into a stock, a company or an index. And, last but not least, experience is what matters a lot.

Remember, as a trader, time in the market beats timing the market.

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