Everyone who take part in stock want to become a winner,but the true is ,winner and loser is exist at the same time ,and they are :8:2. So,Do well work to become winner .Here then are some sugggestion from Peter Degraaf on how to improve your own Stock trading skills:
- Trade only in ‘paid for’ positions .
- Trade only in sectors that are rising.
- Trade only in stocks that have experienced management.
- Trade only in stocks that have ‘net asset value’.
- Put all your eggs in one basket, then ‘watch the basket’.
- Diversify exclusively within the sector you are interested in.
- Do not put more than 10% (5% is even better), of your available capital into one stock, unless you’re just starting out, with limited capital. In that case make 10% your goal as your portfolio grows.
- Buy stocks when price is near the 200 day moving average, as long as the 200D is rising.
- Take partial or full profits when your stock trades too far above the 200DMA.
- The simplest way to do this is to put in a ‘good till cancelled’ order when your stock nears your target price.
- Ideally, if you buy 2,000 shares of XYZ at $1, and the price goes to $2, by selling 1,000 shares, the rest are free, and you can let them ‘ride on’.
- Some traders like to use protective sell stops. If you decide to employ them, use the 200DMA for that. You can sell once price closes below the 200D, or upon the second close, of once price closes 2% below etc. Once your stop is in place, do not change it. Stick with your plan.
- Avoid getting caught up in the ‘hype’. The old adage ‘buy low – sell high’ is still effective, but it only works for those who ‘buy low’. Ideally, when a sector reaches a temporary top, you should be 25% to 50% into cash.
- Avoid looking at your stocks too often. Discipline yourself to ride out the minor ‘ups and downs’, they are part of the game.
- If you’re new to stock trading, do some ‘paper trading’ first. See how you make out ‘on paper’. Or, better yet, open a ‘cyber account’ at Marketocracy.
- Read all you can about the sector, and about the stocks in that sector. Visit www.google.com and see what has been written about the stock. Then spend time at the company website.
- If you decide to follow the advice of an analyst, check out his or her record. Keep track of their advice, to see how accurate they are. Look at previous newsletters in the archived section for guidance.
- There are many other trading rules, and over time you will add some, and drop some, till you have a system that is right for you.
- We end this essay with a quote from Richard Russell, now in his eighties, he still sends out a regular newsletter to his subscribers: “A successful investor is someone who buys the dips and rides the waves”.
By Peter Degraaf.
above advice may be is a good idea for starting out boy in stock. and I want to add some my option:
- Stock like waves,Buy rising,Sell descend.
- If it descend ,No more orders or you’ll lose more.
- More what, Less trade.
Please link to me
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