Stock Trading – Every Investor Should Know
Every investor has his own "smart" investment. These suggestions come from experience, for power investors, not those who "buy and forget" people.
Never try to resist a trend. In order to average your costs, buying a stock may be tempting. In fact, many investors seem to recommend such a step. In practice, in most cases, this will only result in bad money after throwing.
There is always a stop loss per share. If your stock falls, what price do you have to sell? If you do not use historical data and technical analysis to make an investment decision, you must have at least a fixed amount of money. Means that before you buy, you must decide how comfortable you can take out the stock losses, stick to it. Do not hold stock positions that exceed your comfort level.
As the saying goes, taking care of your loss, the profit will take care of yourself.
Track your stocks. Even if your stop has been triggered and the stock has been withdrawn, the stock can reverse the trend and begin a new uptrend.
As a Momentum Investor, you should resort to journal profit bookings. When the stock loses steam, book profits. Later, if the stock shows signs of picking up again, you can enter at any time, even at a higher level. Your decision is based on the potential price rise.
Always remember that any position has an "opportunity cost". If you invest in stocks, you have effectively "stopped" the money from investing in another stock, and perhaps more potential.
Again, repeat: Take care of your loss and profit will take care of yourself.