That's a great investment if you have a 15% return on investment. You haven't made a penny. You haven't even made back your money yet when it's increased 14%, and if it increased 14% and you sold, because of slippage, you would probably still break even or end up slightly in the hole on that stock. That is why I suggest you do not invest any less than $1,000 on any given trade.
If you don't have the money to invest $1,000, save your money and spend your time right now researching and learning more. I promise you guys, I know you're eager to get into the stock market, but it will not hesitate to kick you right in the gut and send you back to your chair, okay? It will teach you a lesson whether or not you want that lesson, I'm gonna be honest with you guys. Okay, so my fifth tip for a beginning stock market trader is do not buy the news https://casinoslots-sa.co.za/first-deposit-bonus.
This is something I did many times over and over, and it's something a lot of people do. You go on NBC or any news channel and you watch the money and the financing reports and the shows that are all about the stock market and they talk about what the newest hot stock is, and I know earlier in this video, we talked about the herd mentality, and when you run with the herd, you're trading like a sheep. What that means is you don't have the confidence to make your own investment decisions, so you'd rather have somebody else tell you what to do, and when somebody else is telling you what to do, it makes you feel like, okay, if I lose money, I can blame them. You need to hold yourself accountable for your trades, and one way of doing this is don't trade the news. There's a lot of people out there trading the news.
A lot of people watch the news and a lot of people trade the news. What you want to do instead is you want to buy the rumor, sell the news. So let's say for example there's articles out there saying okay, this company may be releasing a new product on this date, that's a rumor, okay?
It's possible that it's just a rumor and it's not true, but on the chance that it's true, you may want to make a small investment in that. Then you find out, okay, it wasn't just a rumor, it was true and then they release this new product, the stock goes flying sky high. That's the point when that stock becomes news. That's the point when all of the sheep are dog piling into that stock and it's going way high, but you bought before people knew what was going on. You bought before it was mainstream, and as such, you paid a lower price for that stock, and now you're able to make a comfortable profit.
Sell while it's safe before that hype ends and the stock falls over, because it's my second point here, guys. Hype is not a safe investment. I don't like to trade hype. Okay, so my final stock market trading tip for beginners is this. Checks stocks a few times a day. I actually forgot what it was, so I had to turn around and look at that, so if you're wondering what that was, I completely forgot what my tip was, but now that I jogged my memory, let me elaborate on that for you guys.
You don't want to check your stocks every minute of the day. I know it's exciting, it really is, that's the reason I trade. It's an adrenaline rush when all of a sudden you buy a stock and it's going sky high, and all of a sudden you're like "I actually made money trading a stock, oh my god." But you don't want to just sell immediately because there's potential for more, and you don't want to be watching the stock so carefully that you get shaken out of the position too early. I've done this many times, where all of a sudden I'll check my stock, like you know the stock market opens at 9:30.