6 Tips to Becoming a Successful Online Investor

Do you want to successfully invest online and take your stock trading skills to a new level? If so, you need to take these tips to heart:

1. Follow a Strategy - Do you drive to new destinations without directions? More than likely you will get lost or be delayed in getting to where you want to go. Same applies when investing in the stock market, if you don't have a set strategy, you might as well throw your gas money (nest egg) away. At first it may take some testing to find a strategy you are comfortable with, but once you find it stick to it.

2. Be Patient - Patience is a virtue, especially in the stock market. You may go weeks or even months without finding a prime stock to get your hands on. Taking things one step further, patience also applies when actually placing trades. Waiting a few seconds or minutes could save you a few cents... per share! You don't rush buying a house for you and your significant other, so don't rush your investment decisions either; they help pay for that house!

3. Trust One Person, YOU - Do your own due diligence on any and ALL potential trades you come across. It doesn't matter if it is your friend of 30 years handing you a hot tip, I am sure hasn't made 1,000 percent on a trade before either. And, more often not, he probably got that tip from another colleague (or his broker) who doesn't even know the hours the market is open each day. When you are investing for yourself, you trust one person and one person only before clicking the "trade" button... YOU.

4. Never Stop Learning - The stock market is a GAME, nothing more, nothing less. The longer you play the game, the more you will understand and the more you "tricks of the trade" you will figure out. Don't stop educating yourself just because you beat the market last year, there is always a higher goal to reach.

5. Set Your Ego Aside - If you can't let your ego go, than you are setting yourself up for a sad and lonely road. No one cares that you did 10% in three days, or that you doubled the S & P 500 last year. Sorry buddy, the cockier you get behind your quad monitor setup with your feet kicked up, the harder you are going to fall. Everyone was a hero during the internet boom in the late 90s, but we didn't hear from half those heroes in 2002, what happened? In the end, unless you have a consistently performing track record of 10 years or more, keep on tooting your own horn, no one will be listening.

6. Have Fun - This is probably the most over looked aspect of trading online in the stock market. If you take anything too seriously you are setting yourself up for mistakes. If you don't take it seriously enough you will lose focus and yes, make more mistakes. But, if you can remember that investing online is a game, you can begin to treat it like one and really have some fun. I guarantee you investors like Warren Buffett don't study balance sheets for hours on end for the heck of it, they do it for the love of the game. Where does your passion lie?

Comments

  1. Posted by Stay At Home Dad, Geek Style on August 10, 2007 at 3:32 pm

    Great article! I think the biggest issue most of us have when getting started is ego. It is hard to even fathom the possibility of not knowing how to make money, specifically if we have gotten ourselves in the position of being able to invest.

    DevDad

  2. Posted by Everyday Weekender on September 5, 2007 at 12:08 pm

    great read!!

  3. Posted by Cody Staub on October 2, 2007 at 3:24 pm

    Awesome tips. The one about trusting only yourself seems to be a recurrent one among traders.

  4. Posted by Aaron on December 30, 2007 at 7:37 pm

    Losing the ego is something that is tough to do for a lot of individual investors. A large number of investors want to prove they are the top dog, and by doing so, end up hurting their returns in the long run. You don't have to be a star to do well with stocks.

  5. Posted by Mandy on June 5, 2008 at 12:30 am

    These tips are not only working in stock trading business, but also in every kind of business. Great post!

  6. Posted by Blain Reinkensmeyer on June 5, 2008 at 4:42 pm

    Thanks Mandy :mrgreen:

  7. Posted by komodo dragon on June 7, 2008 at 3:09 pm

    yes yes, patience is indeed a virtue, although i cannot fathom how im going to have fun doing it ? lol

  8. Posted by MiningOilGasGuru on August 6, 2008 at 1:32 pm

    Fantastic Posting.
    I've never heard anyone suggest investing be fun, but it is true. Stressing out too much can only hurt your investment strategy by panicking! Of course patience plays an important role in that too.

Trackbacks

  1. [...] 6 tips to becoming a successful online investor. #2: Be Patient. So true. [...]

  2. [...] and invested in a self-directed IRA [My Retirement Blog]. Maybe his friend Blain has some advice about online investing [Stock Trading 101], or perhaps Agent Sully can give him some tips to make investing easy [Life [...]

  3. [...] are bullish or bearish you always want to follow a strategy. I have written 6 tips to becoming a successful online investor, and this is one of them. Be patient and perhaps you will get to ride Google stock all the way to [...]

  4. [...] Have Fun - This is probably the most over looked aspect of trading online in the stock market. If you take anything too seriously you are setting yourself up for mistakes. If you dont take it seriously enough you will lose focus and …6 Tips to Becoming a Successful Online Investor [...]