Top tips for successful investing from a stock market millionaire

The Naked Trader, real name Robbie Burns, has 12 top tips for successful investing, and he wants to share his knowledge with you.

Robbie Burns says he's lucky to be one of a few ISA millionaires. He did this by investing small amounts every year which built up into bigger sums on the stock market.  

He thinks you could join him if you follow his tips, but he warns it's all too easy to lose if you get it wrong on the stock market. 

So for those of you who'd like to try and earn a few extra pounds, just follow his 12 top tips. 

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1. Treat it like a business

It's not a hobby! Every buy you make is a business decision and must be thought out, and every share researched properly.

2. Cut your losses fast

If you buy something and it starts to tank, get rid of it. Once it goes down a lot you'll probably never sell it.

3. Set up a stop loss

Similarly, you should consider setting up stop losses for your investments. For example, if you buy something at 100p, tell your broker to sell it if it hits 90p. That way you might actually cut the loss.

4. Don't be scared

If you really want to make the buy, make it.

5. Understand your emotions

If you're a very emotional person then trading might not be for you. Trading has to be an unemotional business.

6. Don't trade too often

"Day traders" often lose. Newbies to investing find the more they trade, the more they lose. Some weeks I don't do anything. Most of my big money has come by holding onto companies for years.

7. Be cautious on commodities and Forex

So many traders lose trying to "trade Forex" (currencies). I think it's a mug's game and give it a wide berth.

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8. Plan your trade

What will you do if it goes wrong? How much do you want to make from it and what's your timescale?

9. Beware of Twitter/bulletin boards

Don't just buy something because someone on Twitter did. Do your own research.

10. Use a Stocks & Shares ISA

You can put in £15,240 a year into the market tax free. Why pay tax on your gains?

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11. Only put in what you can afford.

Don't play with money you need. That could end in financial disaster.

12. Don't average down

In other words, don't buy more of something that you already bought higher so you can 'break even'. It may fall further, leaving you deeper in the red.

Hopefully some of these tips will be of use to you. Perhaps the main thing I can tell you is not to be greedy – try and make your money over time.

If you try and become an overnight millionaire not only will it not happen, you'll probably lose your shirt as well.

Robbie's book The Naked Trader is available from Amazon – his latest trades can be found on nakedtrader.co.uk – and he runs seminars on how to trade and invest for beginners. He has made more than £2 million from trading.

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