Things You'll Need:
- computer with internet access
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Step 1
Find a guy that always complains about how bad he is at investing: we all know that guy at the office or in our circle of friends, he always complains that he sells too early or buys too late and always loses money or makes too little. All you have to do is talk to that guy and do the opposite - when he buys calls you buy puts, when he sells a stock you buy it, when he buys a stock you buy puts. This has consistently been my best strategy over the years and is how I will be able to buy my next car. The key is identifying the right guy, you know him, we all do.
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Step 2
Fight the urge to trade on impulse: If you think you are about to miss the train if you don't invest in the next 10 minutes, just stop and walk away. One simple truth is that you never miss the train, there's always another one coming.
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Step 3
Don't follow the crowd: when everyone from your gardner to the checkout boy is talking about investing, that's when you have to get out. Conversely, when everyone starts talking about how bad their portfolio is doing, it's time to get back in.
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Step 4
Never blow your wad of cash all at once: you have to accept that you are going to be wrong from time to time, so when you are wrong make sure you have cash for when the market or your favorite stock hits a low that signals oversold that's when you jump in to average down.
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Step 5
Understand that uncle Sam is gonna get you: in and out trading is widely considered a surefire way to make a big pile of cash become a small pile. On top of this problem is the fact that if you keep buying and selling the same stock, if you make money you will have to pay capitol gains tax, the problem is if you lose money you can't take the loss due to a horrible rule called the wash-loss rule. Look it up on Wikipedia, it will make you cry.
