When the stock market goes up, and all your stocks and mutual funds to make money and feel like a genius. It is unfortunate that some people do not remember what happened in 2000. Of course, we are now in one of these geniuses of stages.

Your broker and financial planner are encouraging you to buy, buy, buy. And I can not fault that at the present time. You remember back in 2000, how many times they told you to buy, buy, buy while the market was going down, down, down. Are we one of those periods, which are now leading to Humongous accident? Hey, I do not predict, but I listen to the voice market.

Great Wall Street mantra of “buy a good stock and hid. You hold WorldCom and Global Crossing? Even if it were exceptions because of fraud a reasonable investor would not lose any money. In fact, he could make a good profit. However, Al, they went under! Yes, I know, but the smart money is still made, because they are sold at the top.

As a former floor trader and floor, I was wrong every time I bought something, and I especially do not like the Giving Back Nice profit, which has been accumulated. You do not have to be psychic to know when to sell and do not think you’ll be able to choose the top. A really smart trader waits for stock or fund, for a start, and then jumping on it with both feet. When he starts down he jumps to another in search of justice, which goes up. The wise trader knows that he can not buy and sell lower overhead. What he wants is a big bite out of the middle.

When you make a sandwich most meat is in the center and a professional trader does the same with their trade. He wants to eat from the middle of the move. You can do this, looking at stocks, mutual funds or funds that are traded on the exchange, which tend to increase in Nice. As I said before buying is not a secret. Then what?

You must learn to sell – for two reasons. First to defend the validity after the initial purchase and second, not to Giving Back profit you have made advances as equity. Great Wall Street secret exit strategy: knowing when to sell. If you learn to sell you will not be successful in the market. Brokerage companies do not want you to sell, and rarely issue sell signals. You must decide how much you are willing to risk before you buy.

The easiest way to stop the loss of interest of about 5%, 7%, 10%, 12%, that you can live. Instruct your broker place trialing stop or you can change it yourself every week. Do not lower the stop.

Sales is a big secret, which you never hear from your broker