Prof. Tyler yamazaki

Test and Develop your Strategy
Always test your strategy, and test it multiple times before you use it with
real money involved. Take note that you have to repeat this process even if
you just change or adjust a minor part of your strategy. A good way to do
this is by using a demo account or by investing the minimum amount.
When you are a beginner, a big part of your time should be spent on
developing a reliable strategy that can earn you some profits. It is advisable
that you should focus on increasing your success rate. Take note that as a
beginner, your main objective is not to earn money right away. Your first
concern is to develop a winning strategy. Of course, a winning strategy
depends on the situation, as well as on the amount of research that you

---

make. When it comes to success in the stock market, the more information
you have, the better is your chances of hitting the right investment. Do not
rush. It takes times to know the best investment decision.
 
Never Chase After your Losses
This is a common advice given to gamblers: Do not chase after your losses.
A quite surprising truth about this is that most people who chase after their
losses are well aware of this advice. But, despite the knowledge that it is not
a good practice to chase after one’s losses, they still fall into this pitfall.
Investors usually get strongly tempted to chase after their losses after a big
loss. After a big loss, you simply cannot think clearly. Hence, even if you
know that chasing after your losses is not a good idea, you may get tempted
to rush and do everything to get back what you have lost. In the process,
you will probably lose all your money. Therefore, so that you will not lose
control of yourself, make sure to have the strength to stop making any
investment when you encounter a significant loss. In fact, give yourself a
time to forget everything about the stock market. People usually chase after
their losses by placing a bigger investment with a hope that they may be
able to recover what they have lost and also win even a bit of profit. After
all, they have already invested some times and effort. The key here is that
instead of chasing after what you have already lost, you should stay calm
and focus on your winnings or profits. Take note that every investment that
you make is unique from all the rest. Therefore, when you encounter a loss,
just admit and accept the loss, and move on. After all, even the best strategy
in the world will also lose from time to time. The important thing is for you
to end up with a positive profit once you add up everything.