Being Fully Invested at ALL Times is a MISTAKE!

Trading is Exciting...I am not going to lie to you. It is an emotional experience.

It is HARD not to be FULLY INVESTED!

Our brains are wired in such a way that if we see CASH in our account, we feel we MUST PLACE a TRADE. It is kind of like having cash in your pocket. Your brain is always looking for something to spend it on.

It doesn't really matter whether you actually "need" that something that you brain is telling you to buy, you just NEED to buy it.

The same thing happens to the beginning investor...

Beginners Can't Stand to See CASH in Their Accounts.

The moment one transaction clears, the stock market beginner feels compelled to place another trade. So he/she will quickly scan some stocks and place a trade in whatever they find, whether it is a good opportunity or not.

As disappointing as it is to hear me say this...

Patience is a Virtue in the Stock Market Today!

In fact, patience is essential if serious mistakes are to be avoided.

I know that it is difficult to avoid acting on news and forgetting the fundamentals of your Stock Market Education but by understanding stocks and price movement, you will begin to realize that there will be just as much opportunity (even more when you actually calm your mind and study your options) tomorrow as there is today in this moment.

We feel compelled to act in the moment. We cannot wait until we have had more time to study. We hear the news; we see a stock value running up and we "HAVE" to place a trade.

This is a natural reaction...It is the reason only a small percentage of people last in the market. This is good for us because after we learn to calm our minds and start understanding stocks, we will need a continuous influx of less informed beginners to keep bringing more money into the market for us to take.

We cannot fall into this trap.

We MUST BE Systematic and Determined in our Approach.

Anyhow, what's the rush? The worst that can happen while you are not fully invested is that the CASH portion of your account will still earn interest as would any money market account.

So DON'T Think your Money is Idle, making nothing. It is much better to be patient and ready to strike when the right opportunity arises than jumping into a stock that loses your cash.

See how trading losses really affect your future success.

My recommendation to counteract this primal instinct to strike is to take one day off between winning trades and two days off between losing trades. Believe me you won't miss out on any "once-in-a-lifetime" opportunities.

Return From "Fully Invested" To "Money Management Guide"