Trading Center

20 Trading Tips

20 Trading Tips


General Trading Tips:

1. Avoid become emotional with your trades. Emotions are essential for understanding humans but not financial markets.

2. At the point where fundamental analysis agrees with technical analysis -a good trade is born.

3. Technical analysis is the king in short-term trades. Fundamental analysis is the king in long-term investments.

4. Analyze charts and patterns and identify similarities over the past.

5. Timing is the key to trading –its better to loose a trade than risking to trade the wrong timing.

6. High increase of volume or volatility usually signifies the change of the market trend. Keep focusing on volume activity and volatility changes either trade stocks or options or any other financial asset.

7. Options Put-Call ratio can be used as a reliable market indicator in identifying major changes in the market's trend.


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Tips for Starters:

8. You must learn to lose before you can earn from trading.

9. Implement always a stop-loss strategy.

10. Be patient, learning how to trade wisely doesn't happen in one-day.

11. If you are a starter avoid trading using high Capital Leverage (not more than 20:1).

12. Learn from experienced traders (forums, books, seminars etc)


Short-Term Trading Tips:

13. If you trade in a daily basis -pick trades focusing on high volatility.

14. Find the brokerage with the lowest commissions –its very important especially if you are a day-trader. You may use Rebate Plans as well.

15. Even in short-term, don’t forget to continuously diversify your trading portfolio risk (No trade more than 5% of your account).


Stock Trading Tips:

16. Follow the trend, 75% of all stocks follow the course of their general index.

17. Avoid trading stocks at periods when the “Cash-is-King”

18. If the price of a stock is doubled (100% return) from its lowest point -Sell immediately.

19. Usually stocks of companies that are market leaders are traded above $20 as market-leader stocks usually perform better.

20. Either you are a US or a non-US trader -always keep an eye on Dow Jones Industrial and S&P 500. These two indexes are very important to all other global indexes and markets.


STOCK TRADING SYSTEMS : » Top Dividend Stocks |» Trademiner (Plus Forex) | » Option Income System



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