Here are some tips to get you started. Some of these may seem a bit obvious, but don't overlook the power of getting back to the basics. Put them into practice on a regular basis and you will be surprised at where they can take you.
Get the Big Picture - Don't settle for looking at just one chart. If you are considering buying into a stock, step back and make sure that you get a look at the big picture. Take a look at what the stock has been doing for the past 3, 6 and 12 months as well as where it is going now. This may help you to recognize the bigger trends and not to micromanage the stock before you begin.
Know When to Fold 'Em - Before going into a new stock, have the exit points clearly fixed in your mind. Know how low and how high you are willing to go before you sell and then stick to those points. Sure, sometimes it may go higher or lower but if you get out at a predetermined level it will help to keep you from walking away from the table limping
Never Panic - It is not always an upward ride on the stock market so make sure that you have your bases covered. Set limits for yourself to make sure that you don't trade too much in any one day. It can be a good thing but can also cause you to panic and not thing straight. Think over any trades before you make them, especially when the day is not going well for you. Above all, make sure that you don't full vest yourself. If you do this you will be more prone to panic if the market takes a turn for the worse.
Invest for Comfort - Sometimes, especially when you are first starting out in trading stocks, it helps to stick with a company that you know. All of us use items on a daily basis that we are comfortable with. This would include things like our shoes or perhaps the types of food that we eat. If you are comfortable enough to use them regularly then you should be comfortable enough to invest in these items. This can also help you when the market has not been good to you and you need to stop and lick your wounds a bit.
Above all, make sure that you know what you are doing. Take the time to get familiar with the market in general and whatever system or software you choose to use. Not only will this help you to be a better trader, it will help you to be a smarter one. Your comfort will help you be on top for the long run.
Get the Big Picture - Don't settle for looking at just one chart. If you are considering buying into a stock, step back and make sure that you get a look at the big picture. Take a look at what the stock has been doing for the past 3, 6 and 12 months as well as where it is going now. This may help you to recognize the bigger trends and not to micromanage the stock before you begin.
Know When to Fold 'Em - Before going into a new stock, have the exit points clearly fixed in your mind. Know how low and how high you are willing to go before you sell and then stick to those points. Sure, sometimes it may go higher or lower but if you get out at a predetermined level it will help to keep you from walking away from the table limping
Never Panic - It is not always an upward ride on the stock market so make sure that you have your bases covered. Set limits for yourself to make sure that you don't trade too much in any one day. It can be a good thing but can also cause you to panic and not thing straight. Think over any trades before you make them, especially when the day is not going well for you. Above all, make sure that you don't full vest yourself. If you do this you will be more prone to panic if the market takes a turn for the worse.
Invest for Comfort - Sometimes, especially when you are first starting out in trading stocks, it helps to stick with a company that you know. All of us use items on a daily basis that we are comfortable with. This would include things like our shoes or perhaps the types of food that we eat. If you are comfortable enough to use them regularly then you should be comfortable enough to invest in these items. This can also help you when the market has not been good to you and you need to stop and lick your wounds a bit.
Above all, make sure that you know what you are doing. Take the time to get familiar with the market in general and whatever system or software you choose to use. Not only will this help you to be a better trader, it will help you to be a smarter one. Your comfort will help you be on top for the long run.
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