The Best 50 Trading Tips

The 50 Best Stock Trading Tips: Lesson 5 Section Eight – Psychology in the market   Background.   No book would be complete without mention of the psychology involved in trading or investing. Much is made of the two major emotions of fear and greed. Fear of missing out, fear of loss, fear of being overexposed and fear of a market crash are all genuine concerns. Interestingly it is usually greed that gets us into the situation of feeling real fear. Greed leads to being overexposed

The Best 50 Trading Tips: Lesson 4 Section Six – Risk management rules   Tip 1 – Always use a stop loss   A stop loss is exactly as the name suggests, an instruction to a broker to sell a particular stock if the price falls to a certain level, hence “stopping the loss”. If you can successfully do this your capital will remain largely intact ready for the next trade.   A “stop loss” order is an instruction given to your broker (or placed on your

Lesson 3 – The Best 50 Trading Tips   Section Four – Portfolio Rules   Tip 1 – Always keep some cash spare in your account   The reasoning behind this rule is that at some stage a stock will exhibit classic buy signals and you may find that your portfolio is fully invested. To avoid this it is always handy to keep a little spare cash in your account.   Keep some cash for emergencies.   Tip 2 – Always sell your worst performing stock   At some stage you may

Lesson 2 – The Best 50 Trading Tips Section two – Trading Rules   Tip 1 – Buy breakouts   No doubt some “experts” will dispute this method of entry but again I rely on experience and have total belief that being a “Breakout Trader” brings about the best and safest method of entering a stock. At very least if you buy breakouts you are at least buying a stock that is rising in price at that time. The trick here is to have a

The Best 50 Trading Tips   Section one – Before you trade   Background   Trader or investor? Short-term or long-term? Perhaps you will address these issues prior to making your first stock market investment although that is unlikely. I imagine most people will jump into the market without any great thought given to any aspect of trading. Usually the first investment that someone makes is based on word of mouth from a well- meaning friend. No plan, no exit strategy, no idea of anything.   This book