You always want to buy stocks that are worth more then they are currently trading at but not until other’s also recognize it and start bidding up the price. Stocks can stay undervalued for a long time. No sense getting to the party before it begins.
Successful traders remain positive no matter what the outcome of their trades knowing that in the long run the expectation is positive. Unsuccessful traders beat them selves up after every losing trade.
Setting short term profit goals in most businesses is effective but in trading not so much. Trading results are usually a result of what the market offers at the time not correlated to the work you put in.
Institutional traders edges include complex computer algorithms, experienced analysts and great relationships with the management of the companies they follow. Retail traders edge is usually being able to identify what institutional traders are doing.
Many seeking to master the art of trading may find Paulo Coelho’s @Paulocoelho new book “The Archer” a great addition to their trading library.
A simple fable with meaningful lessons for trading and for life.