


Stock investment success starts with youStock investment success starts with a correct mindset toward stock investments. The difference between investing and gamblingTo understand the difference between the 2 terms, we have to consider their ODDS, COST and RETURNS Odds are the probability of winning or losing. If your odds of winning are high but the returns cannot cover your cost, you are gambling. Consider the example where you buy 4D lottery from Singapore pools. Even if you buy all the numbers from 0000 to 9999 to make your odds of winning 100%, but with a minimum bet of $1 for each number, your cost is $$10,000 while the maximum return is $8,900. So what would be considered investing? Find a stock investment strategy with high odds of winning and high returns (rare) or low odds of winning but high returns (possible). For example, your strategy has been proven historically to be right 3 times out of 10 when a signal is given to buy a stock. For the 3 times you are right, you make $2,500 each time. For the 7 times you are wrong, you lose $700 each time. Your total profits are $7,500 (3 rights x $2,500) Your total losses are $4,900 (7 wrongs x $700) So even though you are wrong more often than you are right, you still make a net profit. The key to stock investment successAlthough picking the right stock and buying at the right time are important, the key to successful stock investment could depend on how well you exploit your right investment decisions and how fast you minimize the wrong ones In other words, have more money invested where you are right, have less where you are wrong. You are right when the stock price increase is in line with your expectation base on your stock investment strategy. You are wrong otherwise. By now, if you are still looking for a 100% sure win strategy to invest in the stock market, WAKE UP! Losses are part of investing and knowing how to handle losses is a critical part of successful stock investing. Accept this fact and see the improvement in your portfolio.


