Many books will tell you how to make money in stocks as well as every expert on the internet.

How to make money in stocks

The purpose of this page is:

  • To explain to you two rules so about how to make money in stocks. So you can get rich and not lose money.

How to make money in stocks| two rules

  • Never ever even think about buying a stock if the 200 day moving average of the market is down.
  • Do not listen to the news or experts, buy company’s that are making money and you think are good. Do not buy companies that are the next Microsoft or Google.  No one can predict these except the lucky, the rest will lose their money.

How to make money in Stocks |rule one

Look at that 200 day average of the market. You can use yahoo or msn or any chart. The trend is your friend. Make sure the market as a whole is going up. I use the S&P 500 , when it is trading above the 200 day moving average I buy. When it is not. I am not in the market.  Make sure the 200 day moving average is going up.  It is that simple.  If you did this you would not have lost any money in 2008.

That is it.  If you did that rule you would not be in the stock market today in December 2008. In fact you would not have had any money in stocks in 2008.  You would have got out of the stock market in 2007.

Never, ever buy stocks if the market as a whole is going down. It is better to be in cash. Why do the geniuses managing money not know this?  I do not even recommend bonds. Cash or near cash.  That is it.

How to make money in Stocks | Rule two

Do not buy companies that are not making money. Buy companies that are making money now. Today. Not on expectations in three years.  And if you want to make money in stocks, buy stocks that you personally like. Do not listen to the analysts, Warren Buffet or anyone else. How to make money in Stocks? listen to yourself.

I knew a 100 year old rich investor when I was a stock broker. He said his secrete was “do not buy companies that go out of business”.  I would say yes, and do not buy companies that are not making money today. This is how to make money in stocks.

How to  make money in Stocks | Follow rule one and two

It is so simple.  If you want to make money in stocks follow rule one and two. If you have any questions or comments write me.  I know what I am talking about.  You do not need computer models, experts, CNN news or analysts.  I have lost lots of money over my thirty years of investing in stocks because I did not follow rule one or rule two. I am writing this so you will know from now on how to make money in stocks.