My Strategy in Stock Market
Finding Path to Stock Market Success
Introduction
Investing in stocks is often seen as a skillful game, one that requires knowledge, strategy, and discipline. Yet, many people dive into the stock market armed with articles, videos, and “expert advice” from the internet, only to find themselves struggling to make consistent profits. Why does this happen?
Success in the stock market comes from finding a method that aligns with your personality, goals, and risk appetite. Once you discover your own approach, you then can make profit consistent from the stock market.
In this post, I’ll share the strategy that has worked for me — a simple yet powerful method to make some passive income and prevent losing big money in the market.
You Should
1. Follow the Trend
The foundation of my investing strategy is straightforward: I only invest in stocks that are in an upward trend.
Why? Because trends are powerful indicators. In general, once a trend begins, it rarely changes direction in the short term. A strong upward trend often results in either significant gains or, in the worst-case scenario, a temporary dip that quickly recovers.
If you’re new to investing, it’s easy to get distracted by stocks that appear “undervalued” or by rumors of a potential rebound. However, I’ve learned the hard way that hoping a poorly performing stock will bounce back is not a sustainable strategy. Instead, focus on the trend — it’s your best guide to identifying opportunities.
2. Holding Your Stocks
After selecting the right stock, the next step is to hold your position with patience and discipline.
If you’re chasing quick gains or the thrill of daily price jumps, this approach may not suit you. However, for those of us focused on trends, patience is critical. As long as the stock hasn’t broken the intial stop loss, don’t sell. Even if the price fluctuates slightly, stick to your plan. Sometimes, holding firm can turn small gains into significant profits.
Remember, investing is not about instant gratification. It’s about trusting the process and staying committed to your strategy.
3. Knowing When to Sell
A common question among investors is, “When is the right time to sell?” Many people struggle with this decision, but I’ve found a simple rule that works:
- Sell if the stock breaks a critical support level.
- Sell when the stock clearly shows a downward trend.
These two criteria are clear and practical, helping you protect your gains and minimize losses. Selling is as much an art as it is a science, and mastering it requires emotional control. Don’t let fear or greed dictate your decisions — follow the rules.
You Should Not
While having a solid strategy is essential, avoiding costly mistakes is equally important. Here are three rules I always follow:
1. Don’t use leverage.
Leverage might seem like a shortcut to bigger profits, but it’s incredibly risky. A single mistake can wipe out your capital, and recovering from such losses can take years. Instead, focus on steady, sustainable growth.
2. Don’t put all your money in one stock.
No matter how promising a stock seems, never invest all your funds in a single asset. Diversify your portfolio by selecting a few strong stocks from different industries. Personally, I stick to 4–8 stocks at a time, choosing the top-performing companies in their respective sectors. Diversification reduces risk and increases your chances of long-term success.
3. Don’t invest your entire portfolio at once.
Putting all your money into the market at once can leave you vulnerable. It’s better to invest gradually, keeping some funds in reserve for future opportunities. Only invest more when you have some profit already.
Conclusion
Success in the stock market comes from discipline, patience, and a clear strategy. By focusing on trends, holding your stocks, and knowing when to sell, you can make steady gains while avoiding major pitfalls. Equally important is what to avoid: steer clear of leverage, diversify your investments, and invest gradually to minimize risks.
Investing is a long-term journey. Stick to your plan, stay consistent, and let time work in your favor. The rewards will come.
