Candlestick Trading Blog
A Look Back at Basic Investment Advice It is nice to take a look back at all of the investment advice that you have received over the years. These are the investment basics that you may or may not remember to follow every day. In today’s article we will take a look back at the investment advice that you should have received over the years. It should serve as a nice refresher for those few stock market tips and tricks you may have forgotten about! First of all, don’t gamble, make money investing in stock! It is okay to choose popular stocks that you know will grow, but you must also seek out those stocks that are not chased after by the masses. There are many stocks out there that are secrets waiting to be discovered by you! The second piece of investment advice is to develop your own trading philosophy. Compile all of your education, training and experience into one sound trading philosophy. You will need to do this once you have been trading for a while, and you must be sure that as you gain additional experience, that you will continue to tweak and adjust your stock trading techniques. The piece of investment advice that everyone should follow is simply this. Do not follow the advice of others when making your investments. This is not to say that you should not ask others for investing advice, especially trusted advisors and respected fellow traders, but never, make a move if it does not go with your trading style. Remember, it is very easy to make suggestions off the cuff when it is not your money! You must have a plan! Many successful investors make the mistake of focusing only on either getting into a trade, or getting out of a trade. The investment advice given here is that you must focus on both equally, and develop and exit strategy as well in order to avoid making investing errors. Please, please, please exit a trade whenever one of the three happens! 1) The stock fails to respond with a predefined length of time. 2) The profit objective for the trade is realized. 3) The expected catalyst fails to develop or the stock fails to respond as anticipated. Investing in stocks in not the only way you can invest your money. Look into other types of trading such as options trading, foreign currency trading, and/or futures trading. There are many other ways to invest your money. You must also be sure that once you begin investing your money that you learn from your experience. This is really two pieces of investment advice combined into one, but they go hand in hand. It is imperative that you choose an investment option that works for you and that you start a journal so that you track your experiences and learn from them. Probably the most crucial pieces of investment advice you have heard in the past is “only invest money that you can afford to lose.” This is a very important one to remember and sounds very simple, but many people regretfully do not follow this rule. You must be sure to understand the type of risks that you are dealing with when you decide you want to participate in trading and investing. Online Stock Market Reviews presented live via the internet by Stephen Bigalow |
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