
You're probably used to trading calls in a particular way. However, it's a bit different on this blog.
Since no one can predict the market with accuracy we need to follow a bunch of ground rules. If you follow these, you have a better chance of making money in the long run. Here they are.
- Trade according to the trend. In other words, don't trade against the market just because your trading signal can never go wrong. The market will always prove you otherwise. If a stock seems bullish, go long, even if your 'indicators' say short and vice versa. That's why the calls I give factor in both sides of the move.
- Stick to the stop losses. The stop losses I provide are not a formality. You should stick to them at all costs. If you try to pull them, then you're bound to have a big loss down the line, if not today.
- Use trailing stop losses. Although I do provide a target price in each call. I would encourage everyone to use trailing stop losses if possible. That will help you maximize your gains. But if you can't or don't know how to trail stop losses, then go ahead and use the targets.
- Trade reversals. If a stop loss is triggered, no problem. Take your loss and get out. If you see the market reversing, don't hesitate to trade with it. Just be sure you aren't over trading
- Over trading. What does it mean? It means trading larger quantities, which in turn means risking more money. It's true, the more you risk, the more you could gain. But as a long term strategy this is not sustainable. Not over trading means, adhering to a proper reward-to-risk ratio with discipline.
- Be emotionally stable. Don't let hope, fear, anxiety, ego, anger, and the likes get the better of you. This is easier said than done, but with practice it is certainly attainable.
I hope these tips help you in your trading journey. I'll add more to this page when needed.
Godspeed!
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