Successful Stock InvestorInvesting and trading in the stock market is both art and science working together. In order to be a success, stock trading requires following careful technical principles as well as keen observation and instinct. This makes the stock market investing quite a challenge since there is no sure-fire method towards relative success.

But despite the certain uncertainties that stock market trading and investing offer, there are still principles to follow that would ensure a bit of advantage for the long term stock trader. These principles help give investors a better grasp of the market and approach it with a long term perspective. Here are the tips that might help ensure a trader’s success in the long term.

Hold Winners, Let Go Of Losers

This would seem quite an easy rule that most investors can easily abide by. But it this is not usually the case. The problem may lie on the fact that most investors can’t seem to decide on when to let go of their losing stocks, hoping that it would still regain its value. Another thing that makes it so hard for traders and investors to let go of their losers is the fact that they find it difficult to acknowledge their trading mistakes. But for the realistic trader focusing on the long term, stocks that do not perform well should be cut out of the portfolio before they do more damage.

Avoid "Hot Tip" Investing

Some people resort to investing by following "hot tips" given by a colleague or supposed expert in the market. Since most of these so-called tips are made by experienced people in the market, some are led to believe that they must be true. This type of investing would be a mistake.

Relying on hot stock tips from other people is not a good substitute from doing your own research and analysis on individual stocks. The latter would provide you with a better means of evaluating stocks based on facts rather than on tips that other people would say.

Avoid Worrying Short Term

When you have a long term perspective on investments, short term movements on the market should not bother you. After analyzing stocks in the market for their long term value, short term price movements should not be something to worry about. They will come and most stocks usually experience a downturn at one point or another. When investing for the long term, you should be confident enough on your stock picks and get nervous due to short term stock volatility.