Here Are My Top 5 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.
Aï¿½ 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.
Aï¿½ 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.
Aï¿½ 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 you 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.
Aï¿½ 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.
Aï¿½ 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, if you need more money