Top 5 Things Every Stock Trader Should Know.
5. Don’t Chase, Fibonacci Retracement.
High flying stocks, ripping on volume can make you a lot of money. But you can also lose…and lose big. If you’re a swing trader, entries are everything. If a stock is ripping, at high of day, or its up 30, 40, 100% and you decide to buy, then you should be prepared to have a firm stop, and stick to it. Knowing breakout and resistance levels will help you make better lower risk entries. Fibanocci retracments is a great tool to utilize when dealing with these type of stocks. If you don’t get your desired entry don’t take the trade or consider reducing your position size to reduce exposure.
4. Keep Emotions out of your Trades.
This will be the hardest thing to learn and practice. Its always going to be there, but reducing it as much as possible will help you in the long run. Emotions can cause you to lose focus of your strategy. Eventually your emotions will lead you in the right direction after you’ve been trading for a while and you can start to rely on them to make better decisions.
Related Blog Post: How to Control you Emotions while Trading
3. Learn to Read Charts.
Reading charts will make you a better trader. The better you are at reading charts, the higher your chances are that you will be ahead of other traders. Learning how to react to volume, price changes and moving averages will help keep you on top of the game. You should already be familiar with Steve Nison’s candle charts, if not, stop what you’re doing right now and go to his website. Every trader needs to know Nison’s basics to candle charting at the very least. Check out his site www.CandleCharts.com
2. Don’t let Greed affect your Trading Principles.
Every single one of us have been there. If you’re being greedy, you aren’t following the rules. You’re not protecting your profits, playing too large size, not paying yourself or taking on too much risk. Greed is a nasty thing. It’s what leads most traders to failure. We all can’t deny that we want the most profit, we want to wake up in the morning and have a 50% winner…its not likely, and you shouldn’t increase your risk for something that can be so uncertain.
Related Blog Post: Is Being Greedy Hurting your Profits?
1. Risk Management.
The most absolute important part of trading stocks. Your calculated risk should be considered in every single trade. It’s what determines your max risk, profits and position size. If you are entering a trade without asking yourself what your profit to loss ratio is, then you shouldn’t be trading. It lowers your stress levels because you know that you’re prepared to lose a set amount and if you get stopped out, you just move on to the next trade. Tip ~ Set your max stop in relation to important resistant levels (or just below) and size your position accordingly. This will help keep you from getting stopped out too soon and gives your trade more room to work in your favor.
Learn how this trader turned 15k in to over 1.6 million!
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Topic: 5 Things All traders should Do - page 4. (Read 5660 times)
to me the the 5 things that all trader should do are as follow.
1.. every trader should do trade in such items in which he as some good knowledge about it.
2,,,, all trader should invest such amount of money which he can easily bare to lost.
3.... all traders should avoid trading on loan.
4..... traders should try to trade for lonng term.
5.... traders should invest in trading according to his experience.
1.. every trader should do trade in such items in which he as some good knowledge about it.
2,,,, all trader should invest such amount of money which he can easily bare to lost.
3.... all traders should avoid trading on loan.
4..... traders should try to trade for lonng term.
5.... traders should invest in trading according to his experience.
Every trader should know that some coins really has good potential and rest of it just useless coins which maybe pump once and then dumped for good. Every trader should develop their sense to choose the best coins, such as monero when it was $20 few months ago and it reach over $100 righ now. Some coins will be profitable if you can be patient as long as those coins really has usability instead of just for trading purpose.
Very useful all traders should read it, at least this can be a handle to become a successful trader.
There are some difficult points, the first point is very difficult because it is related to emotions. Emotions are very difficult to control and require long learning. And one of the biggest problems for a trader is PANIC.
There are some difficult points, the first point is very difficult because it is related to emotions. Emotions are very difficult to control and require long learning. And one of the biggest problems for a trader is PANIC.
Yeah, its true.Most people trade based o emotions. When the price of the coin they goes a little down, they get scared and start selling it without knowing its worth.They should follow patience while trading
i still hard to managing my emotions. Down price isn't problem for me, but greed makes me lost the moment to sell. Then i must wait again for next pump. My advice: "don't be greedy, 10% profit is enough"
Very helpful to everyone, thank you very much.
Yeah, its true.Most people trade based o emotions. When the price of the coin they goes a little down, they get scared and start selling it without knowing its worth.They should follow patience while trading
One advice i've read before is that if a trader finds himself and realize he had bought a coin which itseem like he don't know why, sell the coin in that very moment. Its going to be a worry free situation for him.
I agree and I call this as "Don't love your coins".You will realize this if your trading for quite some time. I mean here that when theres an opporuity where you can have a profit,I sell. Long Trade is also good, but if you see your already losing and upon reading the ANN,devs already abandoned etc and your not selling ,you may incur more losses.
One advice i've read before is that if a trader finds himself and realize he had bought a coin which itseem like he don't know why, sell the coin in that very moment. Its going to be a worry free situation for him.
Most times traders blow their account not for lacking the right knowledge or trading skill, but simply because their emotions got the better of them. Truth is, no trader like to lose, however it is near impossible to not lose in a very speculative and volatile market as this. So ordinarily, losing one time or the other ought not to be an issue, what becomes an issue is the way and manner a trader sets out to recovery his/her lose and often times it is even their next action after a handsome win.
You say that: "When the coin is down, just start slowly buying. When it’s up just start slowly selling".
So in this point we always need to keep some assets to buy some coins anytime when it's price starts to decreasing. I got it right?
to me the the 5 things that all trader should do are as follow.
1.. every trader should do trade in such items in which he as some good knowledge about it.
2,,,, all trader should invest such amount of money which he can easily bare to lost.
3.... all traders should avoid trading on loan.
4..... traders should try to trade for lonng term.
5.... traders should invest in trading according to his experience.
1.. every trader should do trade in such items in which he as some good knowledge about it.
2,,,, all trader should invest such amount of money which he can easily bare to lost.
3.... all traders should avoid trading on loan.
4..... traders should try to trade for lonng term.
5.... traders should invest in trading according to his experience.
All of those strategy are hard to follow. You can add
also in trading strategy is a decision-making.
Decision-making when to hold or sell the coins that
you bought. But all of these strategy that you posted
really helps the traders.
also in trading strategy is a decision-making.
Decision-making when to hold or sell the coins that
you bought. But all of these strategy that you posted
really helps the traders.
Its really hard to follow it on the first place especially when you are just starting but when you intend to follow it on every trade you would make you would surely get used to it and these ways are useful though and important on which you could somehow increase the chance on making succesful trades in the future.
All of those strategy are hard to follow. You can add
also in trading strategy is a decision-making.
Decision-making when to hold or sell the coins that
you bought. But all of these strategy that you posted
really helps the traders.
also in trading strategy is a decision-making.
Decision-making when to hold or sell the coins that
you bought. But all of these strategy that you posted
really helps the traders.
for number one is hard for me to maintain my emotional when the price is going down i always afraid the price can't be go up again and i will sell all my coin, and for number five truly i'm always missing the pumping cause i'm always sell all my coin in one part, never separate it, but now i will try to keep my coin and missed the pump again
Same here also. I remember when I am new to trading that when prices goes down, I get panic and starts to sell at low price not knowing after a day it goes back to normal and even shoot up. Sometimes a week or even months. Thats why, try to learn the coins movement,be aware always on whats happening,read the ANNouncement thread here for Devs update.
Thanks for this advice, great reminder and tip for those who are starting to trade.
for number one is hard for me to maintain my emotional when the price is going down i always afraid the price can't be go up again and i will sell all my coin, and for number five truly i'm always missing the pumping cause i'm always sell all my coin in one part, never separate it, but now i will try to keep my coin and missed the pump again
6) Invest in a good blood pressure cuff with stethoscope or a good BP machine. Pulse should be under 100. If your vitals are getting out of whack, then you know it's a good time to step away from the computer, close out your positions, and chill the F out for a while.
I could not trade anything professionally. I'd be in the county morgue within a month, and likely on food stamps before that. Good luck to those with balls of steel.
I could not trade anything professionally. I'd be in the county morgue within a month, and likely on food stamps before that. Good luck to those with balls of steel.
I agree with all five things, especialy with the first one. Getting emotional, especialy when I started to panic costed me a lot at the begininig before I've learned how to keep the cool head. And very important is timing and your own sense for trading and ability to predict things.
Yes, focusing on our emotional control must be the very essential step we need to learn foremost. Without emotion control, our trading will never be concluded in profits. Because, we need to stop our trading to book profits otherwise market may turn against us. I too like all 5 points and using them to fine tune my trading skills.I agree, actually these are basic points, every good trader should know about it, but sometime we miss the chance even we know about all rules, because of our negligence and sometime our greediness give us lose, Actually i have a experience of it, i have miss some good chances even i know how to do trading.
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