So how do you not lose money investing in the stock market? It seems like for the past five months. It's been very challenging, especially for tech stocks, as they've been aggressively selling off more now than again, we've seen at least in the past couple of months. With that being said, is it impossible to invest in the stock market and make money well no right, but i think a better question to kind of ask yourself is: can you tolerate the time that it will take for the market to recover for you to actually Make some money and in this video i'm going to be sharing three tips that i think every beginner investor should know before they begin to invest in the stock market. I hope that you learned something new.

If you do, please make sure you drop a thumbs up if you feel like i earned it and also make sure that you subscribe to the channel as i upload new videos every single day about the stock market for absolute beginners, i'm going to start sharing my Screen so you guys can see exactly what it is that i'm looking at and i'll. Actually, let me actually bring you back. One of the first things that i want to talk about is position size, and why is this so important? A very quick example that i can give you is, you know we all invest relative to what we're okay with risking with that being said, the market's selling off one of the number one tips that i always give our learn plan profit members is the importance and Understanding the importance of position size. So if you intend to invest an example, one thousand dollars, let's use amazon as an example, i'm going to go ahead and share my screen.

So you can see exactly what it is that i'm looking at amazon afterwards stock split stock split was at 120. Everyone thought that amazon was a buy right after it did it split because it was going to take off well surprise, surprise the market's been selling off for five and a half months after it did its stock split guess what it still sold off market sentiment is Super super important so again make sure that you never make an impulsive decision just because of what you think people are saying. Overall, it's market sentiment, in my opinion, trumps all, and if market direction is bearish, then yes, there could be short-lived catalysts, which means positive news that pushes the stock up for a short period of time, but normally it always ends up correcting itself. Once hype is no longer present, so with that being said, let's look at this on the day chart, meaning that every candle, uh or every you know candle represents one day of time right.

How is it that you can properly invest with one thousand dollars? A very common mistake - and i'm not calling anyone out i've made this mistake so many times what's going on right now. Well, the market's selling off the market can continue to sell off the feds continue to raise interest rates. I'm sure you've heard it all because of that i have a thousand dollars to work with right. Does that mean that i should buy amazon with my thousand dollars and buy as much as i can? Well, you might be asking well.

Why? Wouldn't i right? Well, one of the sayings that we have within my learn plan profit group is that the cheap can get cheaper. I mean amazon's been cheap, not just now, but it's been cheap last month and the month before that, but guess what it has sold off and sold off and sold off to the point that if you look at previous highs and where we're at right now, it's Down 42, the cheap can always get cheaper. You trying to predict the bottom is not never going to pan out well right. Your job is not to predict the future.

Your job is to simply prepare for it. That being said, how is it that you can manage your position size to be effective? Well, let me give you one uh scenario versus scenario. Two one scenario: is you buy the dip with amazon at 108.95? You go in with as many shares as you can buy with a thousand dollars and then you're all in fingers crossed. I hope amazon recovers.

There's nothing else to it. Right, that's scenario. One scenario two is position size you take it into consideration, you understand, market sentiment is still bearish, market is still selling off, and market can continue to sell off you're very level-headed. So, instead of going in with a thousand dollars, you go in with maybe 10 or 20 of what you intend to actually invest in.

But why would you do that? Why would you only buy a hundred shares, i'm sorry a hundred dollars or two hundred dollars, or maybe even three hundred dollars worth of amazon and not a thousand dollars? Why would you do that? Well, because you know that things can get worse and how horrible would you feel if the market continues to sell off and you have no more money to buy the dip on top of that if the market does continue to sell off because you're fully invested emotionally, It's going to be more difficult to tolerate because you can't do anything about it. You're, literally just sitting on your hands, hoping and praying that the market recovers with scenario b position size, you can buy 10 or 20. The market can continue to sell off and you're kind of just sitting back and relaxing and you're like well. I bought amazon, 10 or 20 because i wanted to.

I don't need it to recover right away. I have 80 of my money still sitting here and i'm only going to utilize that 80, when the market actually begins to recover and market sentiment returns to being bullish instead of bearish. When you actually begin to make money on your initial position, then you can decide to add more. Then you can step on the gas, and this is where position size.

We get a little bit more into it within our learn. Plan profit, lesson library, but that's kind of the very simplistic way of why position size is so important. Not only does it put you in a lighter position and it allows you to tolerate red days a little bit easier because you have less money invested, but on top of that, it almost excites you that yeah market can sell off or if the market recovers. Then great, i don't care because you don't have enough money in the market that it makes you emotional, but you have enough to take it seriously.

You need to find that balance. I think position size is super important. The second thing that i want to talk about is market direction. I cannot stress this enough, the past five and a half months.

I don't care how great of an investor you might be when the markets are bearish and when market direction is bearish or market is selling off. It is so much more difficult to make money as an investor, because normally investors go long, meaning you buy and you intend to sell for a higher price point than where you bought it. At with that being said, i mean it's impossible for the past five and a half months, so because of that, you need to make sure that you put yourself in a condition in which you can tolerate, and this is what we've talked about. The analogy that i love to give our beginner traders within learn plant profit is imagine yourself as a race car driver.

You, you race, a car right very fast on a track. What are the most favorable conditions for you to perform at your best? It doesn't mean that you're going to win, but most favorable conditions for you to perform at your best. I would say that hey it has to be. You know warm enough that my tires can get sticky, but not so warm that my engine overheats, i don't want it to be rainy, because then it's too risky, though the floors are wet and therefore i can potentially crash right.

You begin to create your kind of checklist of things you need for it to be favorable. For you, the stock market is no different. Select. The conditions in which you want to invest in the market direction has to be in your favor.

You know the overall market has to be making higher highs. Market sentiment, that's getting better interest rates are beginning, i'm sorry, inflation rate is beginning to drop whatever you come up with as your criteria, so be it, but the more that you come up with the more confident that you can feel when you take that investment. You get what i mean. Market direction is so important because if something is selling off and you continue to funnel more money into that stock, you're just digging yourself into a deeper hole, but if something is consistently.

This is a good example: making higher highs and higher lows market direction is in your favor, so as a beginner, your entries and your exits might not be the best, be realistic. Let's, let's pretend that you're you're, not a wizard right. Let's imagine yourself, as you know, a normal joe snow like me, by having overall market direction in your favor making higher highs higher lows, you know overall bullish market, you don't need to be perfect with your entries. You don't need to be perfect with your exits, but because market direction is in your favor, it's plain in your favor.

It makes it easier still not easy, but makes it easier, there's still some red days but again, you're investing your intention is to hold long term. So therefore, you don't need to get in and get out at the perfect price point you just need to get in and get out when it makes sense and by having market direction in your favor being bullish, then again, you're making it making the conditions easier. For yourself, it's still challenging but you're, making it easier for you to have a better chance to win that race. The last thing that i want to talk about is i can't - i can't stress this enough how how important it is to understand your intention as an investor, and this is difficult, because it kind of puts everything together with position size with market direction with knowing, when To step on the gas with market conditions, by understanding your intention as an investor, normally investors buy and hold for number of months and or a number of years.

Their intention is not to make money now their intention is to make money in the future. So when you decide your position size, so when you decide you know, this is when i'm going to step on the gas and average up. Please make sure that you understand your intention put yourself in a position to succeed and to stay level-headed by understanding that your intention is long-term. It should really alleviate some of the stress or pressure you might feel and needing to make money now it will make it easier for you to understand that market can continue to sell off, and this is why you have a light position size.

The market can continue to sell off, which is why you understand that it's not about averaging down, but that you want to average up into a bullish position by understanding your intention you're not trying to make money now you're trying to make money in the future. So, the day by day, fluctuation that the stock market, my experience good or bad shouldn't excite you. Nor should it depress you or upset you. It is so important to understand your intention for myself, i like to write it down anytime, that i feel bothered by market conditions and or intra-day activity.

I look back at my notes and i remind myself of the simple intent that i had when i originally took that position, and it makes it just a little bit easier to see that light at the end of the tunnel and that's it obviously investing and trading Is a lot more complicated than just that, but i think that this can at least get you on the right foot and having a better understanding of some of the mistakes to avoid and how to approach this, i would say in a more level-headed way you have So much time to make money in the market, why are you rushing? It prove it to yourself embrace the challenge. This is a very difficult time to invest, but one of the things that i know is that every previous recession ask anybody is viewed as a missed opportunity that every current recession is viewed as a risky time to invest, and that's simply because we can't see the Future, but we can always look back at history and always tell ourselves dang it. I should have invested more, keep it simple. You have nothing but time to learn and you have nothing but time to get better, embrace the challenge with open arms and surround yourself with people that encourage you to be the best version of yourself.

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