| > | | | | flow, low debt ratios, and consistent earnings. And |
| | | | most of all know when to cut your losses and bow |
| When it comes to learning how to make money in | | | | out gracefully once you learn how to make money in |
| the stock market the first and most important lesson | | | | the stock market. |
| is to ignore what Wall Street is telling you and try to | | | | As a shareholder there are two ways you can make |
| avoid that broker. | | | | money — by being paid a dividend or by |
| Suddenly you are faced with brokerage fees and you | | | | holding the stocks and selling when their value |
| are reliant on contacting your broker to get the job | | | | increases. Remember a company does not have to |
| done. If you listened to a Wall Street broker the | | | | pay out dividends if they do not wish too. Personal |
| only words you would ever hear are buy. | | | | preference is to go for the hold and sell at an |
| That’s why you need to learn how to make | | | | increased value which is where your exit strategy |
| money in the stock market. | | | | comes into play which when you learn how to make |
| The problem is anyone can buy stocks but it’s | | | | money in the stock market you will also learn the |
| knowing when to sell stocks that makes you rich. | | | | exit strategy. |
| It’s having an exit strategy that works and | | | | There are three things to consider when building your |
| those that have made millions had just that. Your | | | | exit strategy. You have to ask yourself how long |
| broker get’s wealthy because he sells you | | | | you are planning on staying in this trade, How much |
| stocks and makes a commission. It’s time | | | | risk you are willing to take, and where are you |
| you developed your own exit strategy and knew | | | | wanting to go from here. When you answer these |
| how to make money in the stock market. | | | | questions truthfully your path will become clear and |
| You need to first study the market. Look for | | | | you will be on your way to making money in the |
| companies that are undervalued and stocks with a | | | | stock market. |
| lower price earning ratios than similar stocks then | | | | Making money in the stock market is your ticket out |
| seek out bad news. Wall Street loves to | | | | of the 9 to 5 world. |
| overreact. This is your chance to make some | | | | Copyright © 2007 Joel Teo. All rights reserved. |
| investments with great potential. Investigate | | | | (You may publish this article in its entirety with the |
| company balance sheets and watch for good cash | | | | following author's information with live links only. |