It Has To Be Me Episode

Stock Market Trading: Minimize Your Risk

Diana Perkins

Episode #42: February 20th, 2025

THE GOLD FROM THIS EPISODE

“The analogy of ten trades: Pick ten separate companies to invest in. Expect that three to four will lose a little bit of money, three to five will break even or make a little or lose a little, and then one or two will skyrocket. Cut the losers short and let your winners ride to pay for your losers. Journal your trades, have a strategy, manage your risk, and go in with a clear perspective. Process is important, but data is king. There will be undulations in the market, but that's normal and healthy. You'll come out ahead if you have the discipline to stick to those principles.”

Diana Perkins

CPA and founder of Trading with Diana

“To start trading on the stock market, open a brokerage account. You don't need a lot of money to get started. Most accounts have zero dollar account minimums. You can also trade fractional shares (a piece of a share).”

Diana Perkins

CPA and founder of Trading with Diana

“Plan your trade and trade your plan. It’s about risk management. Greed and fear move the market. It is 70 to 80 percent psychological. Trade the market in front of you. Every trade isn't going to be a winner and your winners pay for your losers. It’s about not making impulsive emotional decisions once you're in. Trust yourself, trust your analysis, trust your plan, and follow that through.”

Diana Perkins

CPA and founder of Trading with Diana

“Don't trade anything you can't afford to lose. Think about how much you're willing to invest, and start small. Manage your risk. No investment should keep you up at night.”

Diana Perkins

CPA and founder of Trading with Diana

“Women are better investors than men, and it has to do with strategy, risk management, and diversification.”

Diana Perkins

CPA and founder of Trading with Diana

"Find out what you want and figure out a way to get it.  And you do that by taking action. It's not talking about it. It's taking that first step.”

Diana Perkins

CPA and founder of Trading with Diana

“Perception is reality. You either take control or you get out.”

Diana Perkins

CPA and founder of Trading with Diana

“You're defined by what you say no to.”

Diana Perkins

CPA and founder of Trading with Diana

in THIS EPISODE

  • Does investing in the stock market look too risky and complicated? Diana Perkins, CPA, equities trader and financial mentor, busts myths about trading, and explains why women make better investors than men.

  • Even as a kid, Diana had a knack for numbers. As a nine-year-old, she opened her first bank account, learned about compound interest, started making small loans to her sister, and earning a return. At eighteen, she negotiated better financing on her first car by stumping the salesman with the time value of money. A decade after becoming a CPA, she was trading equities and options and managing heavyweight portfolios at a global wealth management firm. From there, she went out on her own, founding the private consultancy Trading With Diana, with the mission of expanding financial education and literacy for women.

  • We discuss strategies for building financial independence, and how the stock market fits into that. Diana reminds us that we can open a brokerage account with very little money, and practice trading with a “paper” account, before risking real cash.

  • Noting the mistakes new traders tend to make, Diana says, “trade the market in front of you” and resist knee jerk emotional decisions. Then, straight-out gives us her winning trading formula.

  • Whether you’re new to trading or looking to up your game, this episode will give you actionable tips, and inspire you to look at the stock market and your place in it in a new way.

TESS'S TAKEAWAYS

  • Stock market trading tips for beginners: How to get started.

  • Why women are better investors than men.

  • Practice trading with a “paper” account before risking real cash.

  • The top three mistakes new traders make.

  • How to develop a winning trading strategy for long-term growth.

  • The lowdown on investing in funds vs individual stocks.

  • Invest wisely and diversify your investments to minimize risk.

  • Avoid emotional trading decisions. Trade the market in front of you.

ABOUT DIANA

A seasoned CPA with decades of experience in global strategy consulting, and trading equities and options, Diana Perkins worked on some of the largest M&A deals in the capital markets and wealth management sectors. 

Passionate about empowering women with financial independence, she founded Trading With Diana. Her firm’s mission is to help novice and experienced investors navigate the world of trading and achieve financial success.

Through private consulting, in-person workshops, and online courses, Diana helps clients build financial literacy, break down barriers to investing, and build wealth with confidence.