Small losses
Avoid big losses at all cost. The higher your percentage loss the higher the percentage gain you need to get your money back. With a 50% loss you need a 100% gain to break even.
Control risk
After you enter a position enter your stop loss. No questions asked.
Liquid stock
Liquid stocks are easier to exit. As a matter of fact technical analysis is more reliable with highly liquid stocks. Lots of volume makes it more difficult to manipulate stocks.
Trade strong stocks
A strong stock has no overhead resistance and is trading near its 52 week high.
Just the charts
Never call a company for more details. Their job is to run a business. Trading for a living requires different skills. Everything you need to know is right there in front of you. If you can’t see it – it probably isn’t there.
Pressure
The stock needs to have a basing pattern. Buy the stock near its initial breakout. Don’t chase stocks.
Market analysis
You need to know what kind of stage your stock is in. Stan Weinstein explains the different stages in his book. Trade in the direction of the primary trend. Make sure you identified the trend of the market you are trading.
Discipline
Being disciplined keeps emotions in check. The result is less big mistakes and a better performance.
Avoid big losses at all cost. The higher your percentage loss the higher the percentage gain you need to get your money back. With a 50% loss you need a 100% gain to break even.
Control risk
After you enter a position enter your stop loss. No questions asked.
Liquid stock
Liquid stocks are easier to exit. As a matter of fact technical analysis is more reliable with highly liquid stocks. Lots of volume makes it more difficult to manipulate stocks.
Trade strong stocks
A strong stock has no overhead resistance and is trading near its 52 week high.
Just the charts
Never call a company for more details. Their job is to run a business. Trading for a living requires different skills. Everything you need to know is right there in front of you. If you can’t see it – it probably isn’t there.
Pressure
The stock needs to have a basing pattern. Buy the stock near its initial breakout. Don’t chase stocks.
Market analysis
You need to know what kind of stage your stock is in. Stan Weinstein explains the different stages in his book. Trade in the direction of the primary trend. Make sure you identified the trend of the market you are trading.
Discipline
Being disciplined keeps emotions in check. The result is less big mistakes and a better performance.