How To Play The Stock Market Ten Tips To Help You Out.
You must have an established set of rules in place before you can learn how to play the stock market with any degree of success.
If you break your own stock trading rules the most likely end result is that you will lose cash. Here is one discipline that can harvest rewards. Read these rules before your day starts and also read the guidelines when your day ends. If you want to know how to play the stock market you need to do your homework and stick to your guns.
* I will obey my own rules. If I develop a set of guidelines they are going to be followed.
* I will never risk more than three percent of my total portfolio on any one stock trade.
There are never any old bold traders. Shielding your capital base is elemental to successful stock
exchange trading over a period of time.
* I’m going to cut my losses at five % to 15% when I’m inaccurate without query.
The main reason here is to have set points (stop loss) in the boundaries of your toleration for loss.
Stay up to date on the performance of your stock and adhere to your point of stop loss.
* I will not appoint price targets. This is a style which will let me get the most benefit out of a rising stock.
* I will allow the profits to run. Realistically, I should never pick tops. This is a key point when learning how to play the stock market.
* I will never believe a stock has gone up too high too fast. I am prepared to give up a good share of profits in the expectation of much bigger profits.
The serious coin is formed from trading the extremely big moves that I will often catch. Keep learning and improving at this one method of trading.
* Never jump from one trading style to another. Master just one particular style rather than to
become average at implementing many different styles.
* I will Let share price and volume be your guides. Everything is mirrored in the price and volume.
Don’t make excuses. If an entry signal shows up you haven’t any excuse not to take it.
* I will never trade from intra-day info. There’s always share price change in the course of any trading day.
Depending on this information for momentum trading can cause some inaccurate choices.
* I will take time out. Profitable stock trading is not only about trading. It’s also about emotional strength and physical fitness.
Cut back the stress each day by taking time off the PC and working on other areas. A burnt out trader will not make it in the long run.
Be a better than average trader. To be successful in the market you do not want to do anything outstanding. You need to not do what the average trader does. The average trader is unruly and inconsistent. Ask each day,’Did I follow my strategy today?’
If your answer’s no then you’re in trouble and it’s time to recommit yourself to your stock trading rules and
spend a little more time learning how to play the stock market.
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