Now that you have analyzed your ability and position as a trader, done your DD (Due Diligence), and learned the motive behind each different market it is time to set the ground rules for your stock trading. A good trader seldom breaks his rules. A great trader never breaks his rules. Formulate these rules or methods of trading based upon experience. Trends and patterns can be used to mold a system of attack on the stock market. Because, that is what trading is: a WAR, especially in the penny stock game.
The goal is to get in, get out, and take no losses (or as few as possible). Trying to force out a win will just result in a bloodier outcome. Wait for the opportunity and maximize the gain when it comes.
You want the best trading strategy: Buy Low & Sell High
Do's
Do allocate funds which are not essential to your everyday life which you can realistically afford to lose. Play with these. Not essential funds.
Do arm yourself with the tools necessary for the task. A carpenter would not show up to work without his saw, hammer and nails.
Do play it like a game, and keep score. Don't look at it as a money maker. It can be and will be if you get good. But like gambling, if u keep losing and go all in, house tends to win.
Do take your cut when you can. Look at your gain in terms of percentage points and get down to freebies whenever you can. This will always protect your initial capital.
Do continue to learn at every opportunity. IQ is a great place for this. Members are always there to help. PM me personally anytime.
Don'ts
Don't let emotion ever come into a decision when trading. Anger, stress, sadness, arrogance, or over-excitement can lead to oversights and/or costly mistakes.
Don't break your rules. Set your style and stick to it. It will pay off in the long run. You will learn what works and what doesn't real quick.
Don't ever be ignorant to the fact that the market is bigger than anyone. Market Makers control the market....bottom line
Don't fall in love with a stock or pick. And don't pump it. Day traders get in and get out quick. Take profits and cut losses. You'll learn soon enough.
These are some of my do's and don'ts in the market that I follow to continue to make money in the market. If you have not I would suggest reading my other articles as well.
This article was written by Rob Rens of StockH Penny Stocks Penny stock investing site to help members when buying penny stocks.
Rob Rens of StockH Penny Stocks Penny stock investing site to help members when buying penny stocks.
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