4 Deadly Reasons Why Beginners Fail In The Share
Market
Author: Jason Ng

1. Don't know how to choose the right share to buy
2. Don't know when to bail out of a losing share
3. Don't know when to take profit on a winning share
4. Don't Know how to construct a proper portfolio

1. Don't know how to choose the right share to buy...

How does beginners choose what shares to buy amongst thousands
of shares? You might choose to listen to your share broker, or
listen to your "experienced" relative, or listen to free "share
pick" on the internet...etc... and you will end up losing money.


Because individual share behavior is very complex, only the
most professional full time traders have the right technology
to make proper share pick decisions. Such experience and
technology is simply not available especially to the beginner
trader.

2. Don't know when to bail out of a losing share...

The deadliest killer of beginner traders is not knowing when to
get out of a losing share. Too many traders hold on to their
shares until it is worth nothing. Most beginners will hold on
hoping that the share will stage a rebound because you simply
do not have the technology to tell if a share will ever
rebound! The only way for a beginner to prevent losing
everything is for an expert to tell them when to get out of a
trade.

3. Don't know when to take profit on a winning share...

How many times have you heard stories around you of people who
hold on to shares which made them a lot of money until one day,
the share turned around on them into a severe loss?

Too many people keep thinking that their winning shares will
keep on winning forever and never knew when to take profit...
until the shares crashed on them! The problem is again that
telling when a share is losing upward momentum is extremely
difficult.

4. Don't know how to construct a proper portfolio...

Do you know that many shares actually move up and down together
no matter what? Do you know that there are shares that totally
move opposite to each other? Do you know that many shares
actually move exactly opposite to the way the market is moving?
Do you know that there are shares that do not ever move? Do you
know that there are shares that are on the verge of getting
delisted?

If you do not know the above, how would you ever be able to
intelligently put different shares together so that you can
make money? What if you put a share together with a share that
moves exactly opposite to it? Would you ever make money?

That is why a lot of people are turning to trading a much more
reliable and much more stable instrument; Market Index or
Market Index ETF.

Read about how trading an index based strategy can help you
overcome all these problems at
http://www.mastersoequity.com/MOE_ridetheflow.htm


About The Author: Jason Ng is the Founder of Masters 'O' Equity
Asset Management. He is a fund manager specialising in options
trading and his Star Trading System has helped thousands.
Please visit http://www.MastersoEquity.com.