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Failure of Investing is Preventable

I have mentioned before that the stock market is recovering from the mortgage crisis. After further reasoning and data research. It seems like we haven't reached the bottom or we haven't begun the recovery yet. So, I take this time to talk about how to prevent yourself from being that person who lost his life's savings, his house, and go bankrupt. It is true that for every person that makes millions of dollars through the stock market there are almost the same amount of people that have gone broke. You are in a world where you are buying paper, but sometimes it is not even paper (a transaction online). First stand back and look at the whole thing and not the stocks itself. You see that it is a game for the smart, for the people that think 10 fold before what is going to happen. Just don't put yourself in the same category because you are probably dealing with people that are a lot smarter and who are trying to make the same money. So to prevent yourself from being outsmarted, don't try to beat the market, instead follow the flow of the market. Set greed aside, it is your worst enemy. Invest what you can afford, there are times where the apple is too ripe for the harvest. Take it step by step, it is tough when you can see yourself being a millionaire overnight. Why not gamble for it? “The percentage is high , I did my research!!!” Well if only the market would go with your research, if only there were not any Market Movers running the market. Wonder why after every time you buy a stock, it goes down, every time you sell a stock, it goes up? This is the market mover's effect who moves the market price to make their own profit. Put instability into your mind, always second guess yourself. When you stop second guessing yourself is when you lose money. You either rethink what you are going to do or keep feeding a dying stock . If you could cut your losses, admit you are wrong when you are wrong, stay with your gain, protect your investment by diversifying your account, and invest with money you could live without. Then there is no fear of losing in the stock market. Technically, you are investing to better your living, not to put it in jeopardy. For those who are investing for a living, try to fund yourself well enough where you could handle a tough period. Hedge your account, protect the losses. Keep a balance between long term investment and quick hitters. Stay within the plan, pull the trigger on all gains to protect your profit. You are not trying to get rich from the quick hitter, you are trying to pay the bills until your long term investing is ready to cash in. Same as with the normal investor, don't try to skip steps. It may be hard because you are watching the market everyday and temptation is always there, but remember you can't lose the money you are trying to live with. Wealth is built over time, be patient and success will be almost guaranteed.

Here is a list of things to tell/ask yourself:
1.I'm Happy with my gains.
2.What am I risking?
3.Is it worth that much?
4.Why am I greedy?
5.What is the hurry? I have plenty of time.
6.Am I really that smart?
7.Why not stay with what works?
8.The stories of people that lost everything for no reason are not made up.
9.Do I want a lose everything?
10.Lets take the safe route, it is better to be safe then cry about it later.