Trading Tips

Spending time absorbing these trading tips is yet another way to give yourself an edge; another channel to gather information to make your success stronger. You are risking your money with each trade you make, so I think it’s important to gather as much information from as many sources as you are able to. I like to think I have enough experience that passing along some trading tips I’ve learned along the way just might help you out.

Here Are Some Simple Trading Tips I’d Like to Share With You

  • Choosing a Broker

This is very important; way too important to make a hasty decision. What does the broker specialize in? Is it in an area that will be of service to you? There are enough brokers out there to make your decision hard by sheer process of elimination. You need to consider the fees and commissions. If you are a beginner starting out with a small trading account, you don’t want to sign up for steep fees. As with choosing your trading software and platform, your level of experience makes the decision for you. I’ve found that available access to customer support is crucial. When I can’t figure something out, it’s always at an inopportune time, so I don’t have time to wait on hold or read the manual. I need to talk to a real live person who can quickly solve my problem.  Customer attention is crucial in my books and this is one of the best trading tips.

Don’t Be Afraid of Stop Orders

  • Stop Loss Order

Stop loss orders are a little more complex, but they offer you some protection. You place a stop loss order with your broker at a price that is below the current market price per share. If the stock price takes a sudden drop, your previously set broker instructions will cause a sell transaction of your shares at that stop loss order price; thereby protecting you from further dropping prices. If things remain constant, or if the price goes higher, you still own the stock and the stop loss order never triggers. These trading tips are nothing new, but they are held true over time. Think of it as an insurance policy you have on the side.

  • Trailing Stop Order

This is a little like a stop loss order, but in reverse, in that you place it to protect your profits instead of limiting your losses. Here’s one of my favorite trading tips; if you have already made gains on your investment, you can place a trailing stop order to insure that you keep those gains and make even more if and when the price increases. The trailing stop order will move (trail along) as the price rises, and your profits continue to increase.

Trading Tips For Stocks, Options, Futures, and Forex

  • Check Your Orders for Confirmation

Just because you place your order, don’t just assume it’s a done deal. Wait for the confirmation before you place your exit or any other order. I’ve wound up with the double options and twice as many stocks as I intended to buy because I jumped the gun. That messes up your whole strategy and will quickly cause your trading account to shrink and that’s one of the trading tips that you should never forget. The same thing applies to canceling your order. Wait until the cancellation is confirmed before you move on.

  • Calculate Your True Profits

You need to learn to calculate your profits after you deduct your fees, commissions, and capital gains; it’s sort of gross to net. Calculate this before you set up your strategy to make sure that your gains cover your expenses and more. One way to help with this is to be sure to use a discount broker (assuming they offer the services you absolutely require and provide useful trading tips). After all, it’s like everything else, what you profit is relevant to what you have after expenses, and sometimes that is a shocker. Once again, one of my favored trading tips is about planning and being prepared.

  • Day Trading Tips

When you are day trading and moving quickly in and out of the market, you need volume, enough volume that will create expected chart pattern behavior. If you try to trade at a time when there is low volume, it will be harder to achieve your goals. Here’s another front and centered of my trading tips – don’t even try to trade in after hours sessions or trade some stock that rarely moves.

  • Stick With Your Plan

While of course, you must be somewhat flexible, you need to develop a plan, a strategy, and don’t deviate from it. If you remove fear and greed, the human emotions that cause us the most trouble, you will maximize your profits and minimize your losses every time. Also be sure to consider where you get your trading tips from. Especially when you day trade, your whole day is built around the day’s net. You want to win more than you lose, thereby creating more profits. Discipline will be your best friend. Things are happening so fast, mistakes are easy to make so never forget these trading tips.

Understanding the risks of trading the markets is imperative. With discipline and due diligence you are sure to become a successful investor and we hope you benefit from these trading tips.

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