Monday, 26 April 2010

Stock Market Tips From The Pros

Below are some stock market tips that can be applied to forex trading and or day trading.  

Do you have sufficient capital?

The worst mistake that any trader could make is to trade with insufficient capital.  Always trade with money you can afford to loose.

Remember...  We All Have Losses

Another important quality that the market masters emphasise is the ability to accept losses and to take them promptly. Perhaps the single greatest downfall of all traders is the inability to take a loss when it should be taken. None of us like loosing, but its a fact and it happens!

DO NOT overtrade

Too many traders feel that they must trade every day. Such traders are addicted to trading. The fact is that some days offer few if any trading opportunities. The trader who wishes to preserve capital and avoid losses should understand that trading is not an everyday event.

Always Be Persistent

This is perhaps the single most important quality a trader can have. Trading requires the ability to continue trading even when results have not been good. Due to the nature of markets and trading systems, good times frequently follow bad times, and bad times frequently follow good times. 

Specialise in an instrument

Successful trading is a time-consuming undertaking that requires close attention. Which is why many market masters specialise in certain markets. In most cases, those trading forex would specialise in a particular currency pair; i.e. GBP USD, EUR USD etc.

Trading News

Do not be a follower of the news; rather 'fade' the news. Use the news to exit positions that you probably established before the news became public knowledge.

Stick to your goals...

Above all, remember that as a trader you have one major goal: to make money. To do so, you must be particularly aware of your net profits at all times.

"...Great traders are created, not born. Those who lack discipline, persistence and self-confidence lose the never-ending challenge of trading profits. But those who survive the battle by using the tools used by the masters enjoy the fruits of consistent success."

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