Easy Stock Trading Tipsstock trading online.
Here are the top 5 tips from professional stock traders.
1) Invest no more than 5-10% of your capital in any one stock pick. This helps to reduce your risk of loss by spreading out your investments over a number of potential winners.
2) Build a current portfolio of 20-30 strong picks over the course of 3 to 4 months. While investors may have various opinions and strategies, nothing beats your own time tested formulas that work for you.
3) Always carry an exit strategy with each trade. Every stock that goes up will go down. Sometimes, the best long-term winners may suddenly drop out from under you. Its best to always be prepared.
4) Diversify your capital with first target profits. Diversification is the key to long term success.
5) Focus on making trades that carry a 2 to 3 times greater potential gain (12-24%) than potential loss (6-8%)
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Also, there are some general guidelines that are helpful to keep in mind in terms of the mechanics of stock investing and to avoid large loss. Asking yourself the following questions will help to minimize your risk and a higher ROI on your trades.
- Am I using several charts from different time periods for each stock I am trading?
- Am I starting with low lots of shares? (such as 100)
- Do I know where my exit points will be?
- Am I aware of what the futures are doing?
- Am I using the previous day's trading range as a guide?
- Am I familiar with the proper measurements for buy and sell signals?
New online stock trading advice will be added on a regular basis.