4 Mistakes to Avoid in the Stock Market

Trading can be challenging, but most of all it is risky. Successful investors and traders all agree that making mistakes is part of learning. However, you do not have to repeat the mistakes done by others. We can all learn from mistakes.Here are four mistakes that you should avoid in the stock market for a successful career in trading.

Using margin

As a new investor, you should never be lured by what is presented as free money. A margin is money extended to you by your broker as credit. Without experience in trading, buying on margin could land you in unnecessary debt. Stick to buying stock using your capital which places you within the risk profile that your capital allows you. This way, even if your positions do not yield, you get to live to trade another day. When your investments all flop and you bought them using margin, you land into debt in addition to losing your capital.

Chasing stocks

Wise investment entails purchasing a stock at the right share prices and selling when the price hits your desirable point or when the loss cannot be sustainable. Chasing the sock entails trying to fill an order by bidding successively as the rice moves. This is reactionary bidding, and you might lose your focus pursuing an order without being strategic about the risks and leverage that you hold. Avoid this at all costs. Purchase at the right time and pull out at the strategic time. Don’t chase.

Don’t hope

Trading is all about speculation, but don’t be deceived that it is a game of hoping and praying for the stocks to turn in your favor. So don’t hope. Instead, strategize based on philosophical and logical analysis of the market conditions. This is the only way that you will remain objective in selecting your positions and making the calls.Buying stock hoping to sell them at a profit requires more than hope.It requires discipline in sticking to your strategy and conducting performance analysis to determine how each trade performed, the lessons learned and your profit and loss vis-à-vis our portfolio.This can be determined by carrying out a post-trade analysis.

Underestimating yourself

Most investors, especially beginners, have been scared to the point that they think less of themselves when it comes to excelling in the market. Success has somehow been reserved for the sophisticated investors with years of experience. But don’t be deceived. Beginners can also be successful; it does not have to come after years of trading. However, it also depends on how you define success. For a beginner, success should entail mastering a strategy that flips your $100 to $150 after two days. It is all about getting returns on your capital. And as you get used to trading, your capital also increases in line with your risk tolerance. That is the definition of success. So do not underestimate your abilities and potential to be a successful investor.

What Sells Well on eBay? – 4 Tips to Find the Best Products to Sell on eBay

If you are trying to start an eBay business and wondering about this question then you are not alone. All beginners spend considerable time trying to figure out the best products they should be selling to start a profitable eBay business.

So, what should you sell on eBay?

Well the most logical answer to this question is sell those products that are currently popular on eBay and have a huge demand. Since they have the demand, it should be easier for anyone to sell those items on a consistent basis and earn a steady income from eBay. In fact, most eBay experts suggest this theory. Many of them go as far as to offer you to sell their own “hot seller list”.

So the question is…

Should you sell hot items on eBay, especially if you are just starting out?

Well my answer is NO…you SHOULD NOT sell hot selling items like iPod, digital cameras or GPS Units when you are just starting out.

Why is that? Well there are a couple of problems that makes it difficult for a new seller to make money on eBay selling popular items.

It is very difficult for an individual seller to buy those products at a wholesale price as most of wholesalers tend to sell only to big box retail stores.

Now what about on-line drop shippers and wholesalers? From my experience, I have found that the price they offer is a lot higher than the current selling price on eBay for those items.

If you compare their prices with the current selling price on eBay for any popular product, you will quickly see that there is no way you can make money using those services.

The second problem you will face is that you will have to compete with big retailers and national wholesalers who use eBay to sell their refurbished and return items. They generally gives deep discount that brings the price down so much that it becomes impossible for an individual seller to match those prices. This is the main reason why people have such a hard time selling popular items from a drop shipper.

Then what can you sell on eBay and earn a part-time or full-time income, especially if you are starting on a limited budget?

I always recommend that you should sell items that are low cost, meaning MSRP below $50, that has a consistent demand on eBay. Also, I like to sell items that people need in their everyday life. These are not as glamorous as the “Hot items” but they do sell well on eBay and you Can make a profit selling them.

I always ask the following questions:

Is it something that people need in everyday life?

I like to sell products that people need in everyday life. There are two reasons I like to sell these products:
First: there is a consistent demand for these items and you don’t have to worry about changing trend. There is a consistent demand for these items all year long. And there is a huge benefit when you do that. You can buy in lot (and get a deep discount) and don’t have to worry about what happens if you can’t sell them ASAP.

Second: It is a lot easier to find a true wholesaler who will sell these kind of products at a wholesale price. And you don’t have to spend a fortune to buy from a wholesaler either. I have bought wholesale investing as little as $500. For example, if you sell everyday products like perfumes or baby toys, you can easily find a wholesaler who will deal with you give you a deep discount. Now compare that with iPod or Nikon XLS. Good luck to you if you try to find a wholesaler for those items.

Can I sell more than 5 items a day?

I like to sell only those products that I can sell more than 5 items a day and make on average $10 per sale. Why? Think about it, if you can sell 5 units of a certain item a day and make $10 profit that means you are making $50 profit/day. Now if you can sell 5 items like that, then you can easily make $250/day from your business.

Is it something that people will buy more than once a year?

I like to sell products that people needs more that once a year. That means if I provide good customer support and make my customer happy the first time, then there is a very good chance that he will become a repeat customer. Now why is it important to have repeat customers? Because it is easier to sell to repeat customers; you don’t have to compete with other sellers to sell to them multiple times. Think about Wal-Mart or Target. They are successful because they have a loyal customer base that buy from them multiple times.

Most successful eBay sellers rely on repeat customers. About 35% of my profit comes from repeat customers alone.

Can I buy that product form a wholesaler?

It is very important that you buy from a wholesaler at a true wholesale price. Remember that you don’t make money when you sell. You make money when you buy. I recommend that, you don’t sell any product that you can’t buy at wholesale price as you will have hard time making money on eBay if you do so.

Finding a wholesaler is not that difficult as people makes it sound, if you choose to sell something that is not the craze of the moment.

What happens when you use these criteria to choose a product? You systematically, force yourself to concentrate on those products that:

  • Have a consistent (may not be a mad gold rush) demand on eBay
  • You can buy at a competitive price
  • You have a chance to sell to the same customer multiple times

Finding the right item to sell on eBay needs a little bit brainstorming and some research on your part. So before you invest any money on any items I recommend that you take the time and do your some market research.

First, look at eBay completed data and make sure that the items are selling on eBay on a consistent basis.

Second, before finalizing on a product source do some price comparison. Crunch your number and see whether you can make money selling those items on eBay. It doesn’t matter how hot an item is selling on eBay, if you can’t make money then there is no reason for you to sell it.