1 0 Tag Archives: trending market
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Successful Principles of the Stock Market

The very best traders and investors tend to share many of the same principles. They are principles that have been proven successful, over a long period of time. Today, I will cover some of these principles, used by top traders, to achieve great success in the stock market.

The first principle is to always put as many factors as possible in your favor, before taking a position in the market. I will not take a position in the stock market, unless the odds are strongly in my favor. I want the technicals and fundamentals to be solid.

Once you become a good trader, diversification becomes something you do not want. Diversification will give you mediocre results at best. If you want to become a great trader, your results must reflect it. Buy only the best stocks at the best possible time. This is achieved by doing proper research and analysis.

Traders tend to like taking profits, but they do not like to take losses. You must be able to let your profits run. In other words, do not sell your winning stock until the weight of the evidence tells you to do so. Keep all losses small. You must do this to preserve your trading capital. You will be preserving your psychological capital as well. Both are very important.

Do not try to pick exact bottoms and tops. You are much better off waiting for a reliable, recurring chart pattern that gives you solid evidence of a trend reversal. Let the market tell you it has changed trends. This is achieved by being in sync with the market. Always go with the flow. Do not fight the market.

These are some of the successful principles used by top traders and investors to achieve superior trading results. Successful trading and investing takes a lot of work and education. Learn from the best. Read their books. Study their strategies, methods, and principles.

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02. Mar, 2011
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Stock Market Investment Tips

If you’re looking for stock market investment tips keep reading because today I am going to give you my top 5 tips. Here are my top 5 stock market investment tips.

1. The market pays you to be disciplined – Trading with discipline is an absolute must, it will allow you to put more money into your pocket than you take you. At the end of the day the one constant truth concerning the markets is discipline = money.

2. Always lower your trade size when you’re trading poorly – All good traders follow this rule. If you have two losing trades in a row lower your trade size down to a one lot. If your next two trades are profitable, then move your trade size back up to what it was originally.

3. Never turn a winner into a loser – I am sure that you have made this mistake before. What we are really talking about here is greed. The market rewards you by moving in the direction of your position, you hold on in hopes of making a larger gain only to watch the market turn against you. Of course you now hesitate and the trade further deteriorates into a substantial loss. There is no need to be greedy, it is only one trade, you’ll make many more so relax. One trade should not make or break your performance for the day. So don’t be greedy.

4. Your biggest loser can’t exceed your biggest winner – Keep a log of all your trades for the session. Take note of your biggest winner and do not allow a losing trade to exceed it. If you do allow a loss to exceed your biggest gain then effectively what you have is a net loss of the two trades. Not a good idea.

5. Develop a methodology and stick with it, don’t change methodologies from day to day – Write down the specific market prerequisites that must take place in order for you to make a trade. It doesn’t necessarily matter what the methodology is but it is important that you have a set of rules, market setups or price action that must appear in order for you to make the trade. You must have a game plan. If you have a proven methodology but it doesn’t seem to be working in a trading session don’t go home that night and try to devise another one. If your methodology works more than one-half of the time stick with it.

These are the best stock market investment tips I can give you. I hope they’ll help!

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31. Jul, 2010