FradySherer141
Initially when i first started trading the stock exchange, there was not the wealth of information available online like there's today. I just read lots of books and learned the terms and thought I knew everything essential to make my fortune trading the marketplace. I discovered a price reduction broker and started plugging away, and immediately lost my shirt.
Despite the fact that I'd read these same tips in numerous places, I really didn't understand the need for them until I had learned them hard way. As the saying goes, experience is the greatest teacher, should you survive the lesson.
These are things that I wish I had really used initially when i first started trading.
1. Never invest money you cannot afford to lose.
2. Never invest money you're afraid to get rid of. If you are too uptight, you're guaranteed to make bad decisions.
3. Never buy a stock you obtain in an unsolicited email or perhaps in a mass mailing. Many times, these turn out to be inexpensive, thinly traded small cap stocks that someone is attempting to pump in the price and dump them.
4. Many of them time, you shouldn't buy stocks in the open of the market. The very first hour of the trading day typically provides extensive volatility. Stocks tend to stabilize following the first hour; you can wind up paying too much looking to get a regular, only to have it settle down in price 30 minutes later.
5. Like a new investor, never buy stocks on margin. It's OK to have a margin account; just don't use the margin until you have enough knowledge to help keep yourself too much of trouble.
6. Don't be concerned if you think you just missed the biggest trade of the season. Never chase a stock trying to get on board, should you wait Half an hour, another trade will come along that is just as lucrative. (This one tip might have saved us a fortune)
7. Learn to make use of a trailing stop. Immediately after purchasing a stock, put in a stop-loss order, and keep raising the stop limit. This will preserve your gains, but more to the point will preserve your capital.
8. Never buy until you have determined when you are going to sell. You should know what point you will pay a small loss and move on. When you buy, keep that stop-loss point; never change this point within the heat of the battle, since this is guaranteed to cost you money.
9. Never get greedy. That old market saying is Bears make money, Bulls earn money, Hogs get slaughtered is extremely true.
10. Don't treat the stock exchange like it is your private Las Vegas gambling casino. It's Suitable for a small part of your portfolio to gamble, but it is called investing for any reason.
Should you follow these simple tips, they'll save you a few of the misery which i experienced at the start of my trading career. Try not to get caught up throughout the data overload that's coming to you from all directions. Slow down, there will lots of good trades open to you tomorrow, if your trading capital is still available.
