Simple Tips for Making a Killing in the Stock Market

With it I can filter new market highs and lows as well as draw trend lines.

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I write this as a "heads up" to the new investor, especially those who intend to start investing money in the stock market in 2015 or 2016. We're all a new investor sometime and all subject to the same misconceptions, illusions and mistakes when we start investing money in the stock market. Here's a simple guide to investing money as the market unfolds in 2015 and 2016.

If you start investing money in the stock market before you have a handle on such things as P-E ratios, dividend yields and past market cycles consider yourself a new investor. Ditto, if you don't feel that you really understand the big picture - even if you have been an investor for several years (like millions of other folks). I write this as a former financial planner who worked with many uninformed (new) investors... because most people who start investing money in the stock market do it uninformed.

Many new investors get excited when the market makes new highs. If you were excited by the new highs in the market in 2014, take a deep breath and push your emotions (like greed) aside before investing money in the stock market in 2015 and beyond. Don't be afraid of "missing out" because stocks are NOT cheap (P-E ratios are not low) while dividend yields ARE low. There are few bargains around. After more than five consecutive good years the "herd instinct" has taken over on Wall Street. If you became a new investor since the financial crisis ended in early 2009, you have probably been misled by what you've seen.

You may now be a member of the herd and overly optimistic about the future. That's what often happens to new investors who start investing money in the stock market at or near a market low. Those who "luck out" with timing their first time out are vulnerable to future market shock. "It's better to be lucky than good" is likely to work for the new investor only once. Don't push your luck in 2015 and beyond.

Market cycles have always been a major part of the game, and few new investors really have a perspective on market trends. The newbie who gets lucky often credits his or her success to stock picking. The simple truth is that it's easy pickings if you start investing money in the stock market when a new uptrend sweeps prices higher. On the other hand, if you start investing money when a major downward trend takes hold, your odds of taking big losses are about 99%.

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Trading on the stock market is a great way to achieve financial independence but the road is littered with obstacles and hurdles that will most certainly see you lose your investments. Yes you can make money on the stock market but without the right advice as I say will make you a stock market loser no doubt. We don't want you to be a loser, so here are some simple tips to becoming a winner.

First of all, it's best to employ a broker to handle all your trades. exchange rate