Sooner or later everyone comes across the stock market as a potential opportunity do make some cash, although it may look very simple, and others earning rewarding ... it's easier said than done.

I have been in the stock market, not as a professional, it's been a constant learning situation for me ... every mistake (bad investment or bad decision) has been an opportunity to improve, and surely think it's important to share the little I've learned to eventually help beginners to get on the right track.

Lesson nr. 1 - Stick to the plan

Adopt strategies for your investment, define on paper your objectives and the reasons you are investing on that specific company. Try to establish stop loss zone and potential gain. If the market doesn't respond to your initial expectation, then stick to the plan.

Lesson nr. 2 - Always use Stop Loss

People are people and markets are markets ... one creates a scenario for a specific stock ... however markets are somewhat irrational and sometimes unpredictable ... the quote we see at a moment reflects not only the fundamental value of the company, but expectations regarding the same.

It's obvious that any trader doesn't get a hit every time up at bat, therefore, imagine you have 50% win trades and 50% loss trades, if you limit your loss trades, you may be able to have potential gains ... Limit the downside and explore the upside...

Always use stops on your equity, it's a lifesaver ...

Lesson nr. 3 - Don't let a profit turn into a loss

Worse than losing, is letting a winning situation invert to a loss. Use stop loss system to protect your earnings, don't fight the market, surf it...

Look at historic graphics and try to visualize the intermediate goals for the price of your stock, don't forget to keep upgrading your stop accordingly ... this way you'll maximize your earnings ...

Lesson nr. 4 - If you want to buy or sell a stock ... just do it

If you want to buy or sell a stock just do it, many times, we try to buy at a given price, which may not occur, or sell at a price which may not be matched by pennies... look at the total amount invested ... and don't get left behind because of a few dollars... you may regret it later.

Lesson nr. 5 - Buy on the rumour sell on the news

Inside information is something inevitable in any market, even with all the effort to sustain this type of information, someone will actually be using it in the market ... so the rumour normally expresses itself through an increase in the stock price, after the rumour is confirmed or denied the stock will lose a potential gain, so my suggestion is sell it as soon as it no longer a rumour.

Well, these are a few very important tips, you may think they are too simple to be useful, but normally people tend to adapt to situations instead of reacting.

Good luck and good trades.

Tomson