Stock Market Trading Tips

STOCK MARKET TRADING TIPS

By www.CandleStickForums.com

http://www.candlestickforums.com/

www.CandleStickForums.com

There are so many stock market trading tips available online.



In this article we focus on stock market trading tips that can be applied to other types of trading in addition to trading stocks.



Tip #1 Create a plan and stick with it. If you want to have consistent trading success you must create a trading plan that works and stick to it.



This plan must include the set of trading rules that you have defined, your trading strategies, and techniques, and much more.



You must include your entry and exit points as well as your stop loss strategies.



You must also document your emotions that you felt during a trade so that you prevent emotional trading.



Tip #2 Test your plan. Your trading plan is not worth sticking to if you havent tested it to ensure that it works.



Once of the most important stock market trading tips that you will come across is to test your plan.



Online paper trading is a great way to accomplish this.



You can practice trading just as you would but without trading real money.



Your broker should have a demo account set up for you to do this so that you can get used to the trading system and your plan before trading with real money.



Tip #3 Cut your losses and let your winners run.



The key is to minimize your losses and don’t try to win every single trade.



On the other hand, you must let your winners run and don't close out of trade too early for fear of missing a small but real profit.



Simply follow your trading plan. Every single trader, no matter the experience level loses out on trades.



That is just part of the stock market game.



Tip #4 Know what you can afford to lose. Before you know how much you can afford to invest you must know how much you can afford to lose.



Investing money is risky and you should only invest what you can afford to lose so that you do not negatively affect the quality of your life.



Only trade what you can afford to lose and do so knowledgeably.



Make sure you know exactly what you are doing before you place that first trade.



Tip #5 Know yourself. Pay attention to who you are.



Are you the kind of person who analyzes every single detail or do you fly by the seat of your pants?



Do you panic under pressure? Understand the psychology and trading and answer these questions about yourself before you begin to trade.


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