Trading or investing is a serious business with risk element that can be mitigated by having proper understanding of stock market dynamics to minimized losses and maximized profit in any market situation.

(a)In equity investment, the first attraction is price and it gives information about the company.  When a company is undervalued or overpriced it is the price that tells it all, when it is inadequately priced, you as an investor or trader should know when taking decision at any time.

Always, price is what you pay for the value you expect to extract from the company. Your ability to know what is behind a price will guide your entry and exit from the stock.

Market direction and what is happening in the market place at any time is very important for you as an investor and that is while any investor or trader should not be far from the market.

(b) Emotion in the stock market is checked by first setting your investment objective and having rational thinking before taking any decision or position. Panic is as a result of fear and it is an incorrect behaviour that pushes you to oftentimes take irrational decisions. Patient is needed whenever the right decision is deemed to have been taken.

(c) also, there is the lack of patience which leads you to exit position hastily due to fear that may result to losses  or too little profit that would not meet your investment goals.

(d) Avoid depending solely on gurus. Take your destiny in your hand, by doing it yourself rather than entrusting your hard earned money to another person. Become an active trader yourself by training yourself. The experts are interested in their fees and this is why investors need more investment education to take informed decision.

(d) Over-diversification, greatness is not achieved with a 20-stock portfolio. Beware of volatility that is common in thin stocks, especially in this last quarter of the year.

Empowering investors and traders for better returns

Step 1, Understanding the market by reading charts 100% correctly, then identify a trend or a market range on a different time frame. Look for a trading setup according to your trading style or plan to achieve your goal.

Step 2, if a signal is triggered, don’t delay, take stage by stage position as I have always told you on this platform. If the trend goes your way ride with it.

Step 3, the market never moves in one direction without taking a breather in form of a pullback or retracement. You should therefore take advantage of these pull backs for your good.