Online Stock Trading – The Top 10 Tips For Stock Market Beginners
Do you want to start investing in stocks? Here are my 10 best tips for beginners.
1. First of all, always try to get enough information to make a rational decision. Do not buy or sell shares based on your emotions.
2. Trade based on a clear and precise trading plan. This will help you to follow rule number one. A clear plan which you can follow blindly will keep emotions out of stock trading.
3. The shorter the time frame the bigger the risks and the bigger your experience must be. If you are a novice stock trader then do not start with day trading. Give yourself and the trade time to develop. Follow the buy and hold strategy in the beginning.
4. Do not spend all money in one trade. No good trader puts all eggs into one basket.
5. Always have an exit strategy. You must know when and where to exit, for profit or for loss.
6. If you do not know what is going on in the market or in your stock, exit the trade without hesitation.
7. Go with the trend. Never trade against the trend. Bottom fishing does not work or you need a big amount of experience or luck to make it work.
8. Do not invest in penny stocks or unknown companies. Go with the well known brands and blue chips first.
9. Do not trade too many stocks at once. At the beginning, trade only one stock at a time.
10. Stock trading has a learning curve. Do not expect to know everything in a few days. Always trade lowly.
Follow these 10 rules and you have a chance. Ignore them and failure is guaranteed. The more you know the bigger your profits.