In the world of stock trading, you pretty much have just one goal. You are trying to outperform the market. If the market made 10% and you made 8%, pretty much, you shouldn't have bothered at all. You might as well have just put your money in an index fund.
Well, if our objective is to beat the market, how do we do that?
There is no one hard and fast way to do that, but there are a number of things that you should do (or should not do) that will greatly impact your success or failure.
1) Watch your trading costs. You must keep your transaction costs as low as you possibly can. If those become too great, they can turn you from a winning trader into a losing trader very quickly.
The best way to watch you trading costs is to simply go with the cheapest broker you can. Sure, great service is a plus, but you don't need service. You need a good way to place trades cheaply.
2) Don't over trade. There will be times that you will be tempted to just make a trade. Bad idea. You want to play it safe. Only make a trade when you have the advantage on the market as per your trading plan.
3) Fearing the outcome. If you are afraid of losing, you will do poorly because you will make bad decisions. You will pull the plug on trades that you should stay in, and vice versa.
If you are scared of the outcome, you are risking too much. Either you need to cut back on your risk per trade, or you need to stop trading all together for a time.
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called "How To Pick Winning Stocks - The Secret Formula"
Article Source
Well, if our objective is to beat the market, how do we do that?
There is no one hard and fast way to do that, but there are a number of things that you should do (or should not do) that will greatly impact your success or failure.
1) Watch your trading costs. You must keep your transaction costs as low as you possibly can. If those become too great, they can turn you from a winning trader into a losing trader very quickly.
The best way to watch you trading costs is to simply go with the cheapest broker you can. Sure, great service is a plus, but you don't need service. You need a good way to place trades cheaply.
2) Don't over trade. There will be times that you will be tempted to just make a trade. Bad idea. You want to play it safe. Only make a trade when you have the advantage on the market as per your trading plan.
3) Fearing the outcome. If you are afraid of losing, you will do poorly because you will make bad decisions. You will pull the plug on trades that you should stay in, and vice versa.
If you are scared of the outcome, you are risking too much. Either you need to cut back on your risk per trade, or you need to stop trading all together for a time.
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called "How To Pick Winning Stocks - The Secret Formula"
Article Source
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