Online Stock Trading – Top 10 Tips for Stock Market Beginners
Do you want to start investing in stocks? Here are my top 10 tips for beginners.
1. First, always try to get enough information to make a rational decision. Do not buy or sell stocks based on your emotions.
2. Transactions based on clear and precise trading plans. This will help you to follow the rules first. With a clear plan, you can blindly track stock trading that will keep your emotions.
3. The shorter the time, the greater the risk, the greater the experience must be. If you are a novice stock trader, do not start trading on a daily basis. Give yourself and trade time to develop. Follow the initial buy-and-hold strategy.
4. Do not spend all the money in a trade. No good trader put all the eggs in one basket.
5. There is always an exit policy. You have to know when, where to exit, for profit or loss.
6. If you do not know the market or what is happening to your stock, please do not hesitate to exit the transaction.
7. Follow the trend. Do not trade with trends. Bottom fishing does not work, or you need a lot of experience or luck to make it work.
8. Do not invest in a penny stock or an unknown company. Go with well-known brands and blue chips first.
9. Do not trade too many shares at once. Initially, only one stock is traded at a time.
10. Stock trading has a learning curve. Do not expect to know everything in a few days. Always trade low.
Follow these 10 rules and you have a chance. Ignore them to ensure failure. The more you know the more profits you make.