Don't Force Trades

Every trader has tried to force trades at one point or another. They make trades because they feel they need to. However forcing trades can be the fastest way to lose money in the stock market.

Anyone who has ever been involved in the stock market has had one of those I wish moments. I wish I would have bought Microsoft, I wish I would have got into stock XYZ before this big jump, we all get them.

The problem with that is it gives you a sense of missing an opportunity. This in turn makes you want to be fully invested in the market at all times so you do not miss any great opportunities. Bad idea!

You should never let something like that affect your trading. Getting into a position just to be in a position will hurt you more then it will help you. Anytime you enter a position you should have a good reason. It should give you a signal that it is going to move in your direction before you enter it.

Only getting into stocks that give you a trigger becomes even more important when the markets are hard to trade. During this time you probably do not want to be fully invested in the markets. In fact if the markets are running wild making a $400 gain one day and a $600 point drop the next you may want to sit out of the markets altogether.

If you still have the urge to be in something it is important to only take trades you feel are top of the line. Taking trades with strong fundamentals, strong technicals, and look like they are the Holy Grail. This will save you from taking a lot of losing trades when the market is trying to figure out what it wants to do.

When the market is clearly trending money you may want to be a little more aggressive but still remember to follow your rules. It is easy to get caught up in the feeding frenzy of a trending market. That can hurt you when the market turns around.

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