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I've put together a few stock trading tips that have been key to my success. These tips have not only boosted my profits, but they've saved me from taking enormous losses. They're nowhere near as detailed as the stock trading tips ebooks that come FREE with your subscription, but they will get you started on the right track:
#1
Earnings are the single most important criteria in trading, because they drive the price action of stocks. Institutional traders (mutual funds, banks, insurance companies, etc.) place a MUCH higher value on companies that have track records for growing their earnings, and you want to be trading the same stocks the "big boys" trade.
#2
Trade leading stocks whose chart patterns indicate that they are setting up to either break out or rebound. You want to trade breakout stocks when they break through their buy points on strong, well above-average volume. Rebound stocks are a great way of buying leading stocks at rock-bottom prices. I use my charting expertise to identify exact breakout and rebound buy points for my subscribers.
#3
Trade during those periods when leading stocks are breaking out or rebounding with regularity. Like so many "canaries in a coal mine," leading stocks tend to continually make new highs in strong markets, and are the first to struggle in weak markets. By the same token, leading stocks are also among the first stocks to signal that market conditions are improving when they form reversal patterns, amd start to move back up again. My updates can help you spot these highly profitable rebound buying opportunities.
#4
I suggest only taking a portion of your position in a stock initially. Probe the market with maybe 25% of the position you eventually wish to take, another 25% if the stock continues to act right, then maybe the remaining 50% if it continues to move higher. This is a technique Jesse Livermore used very effectively in the market, and the one I recommend.
#5
Trade a manageable number of top quality stocks. Maybe only 4 or 5 breakout stocks at a time if you're a beginner or intermediate trader, 8 to 10 if you're a more advanced trader.
#6
Unless you are a seasoned trader, select stocks which average at least 250,000 shares traded a day. Thinly traded stocks can be more volatile than widely-traded issues and can wreak emotional havoc on less experienced traders.
#7
Trade only during confirmed market uptrends. Three quarters of all stocks, including top quality stocks, tend to follow the fortunes of the overall market. The trend really is your friend!
#8
Concentrate mainly on stocks that are in strong sectors as this will improve your chances for success.
#9
Take the self-appointed gurus you see on TV, on social websites and elsewhere in the media with a grain of salt, REGARDLESS of how many fans they have. Having lots of followers or fans does NOT mean they're right, and in fact, they are often VERY WRONG! Trust only in the facts and a top stock pick's price action as indicated by its chart.
#10
News rules! Pay close attention to scheduled economic reports. They are bellwethers as to the strength or weakness of the economy and the releases of these reports often have a dramatic affect on the market and ultimately, the stocks you trade.
#11
Pay close attention to the scheduled earnings release date for any stock you are holding and never hold a stock through its earnings announcement unless you can withstand any possibly substantial losses that might result, in the event a company comes up short.
#12
Decide in advance whether you're buying a stock for a long-term investment or a short-term trade and stick with that time frame. Don't execute a trade with the intention of pocketing a short-term windfall, and then suddenly decide to switch to a long-term buy & hold, or vice versa.
#13
Take some profits, selling anywhere from 30% to 50% of your position(s) (depending upon market conditions) after they have appreciated 10%-15%.
#14
Exit a stock when it breaks its ascending trendline or violates a moving average that it has respected at least 2 or 3 times times in the past. Sell any time a stock moves 7% below your buy prince, no questions asked.
#15
Use a real-time trading platform/charting service. This will enable you to gauge the strength of a stock's price-volume action.
Whether you're a seasoned trader, or just starting out, it's my hope that you will benefit from some of my trading tips. When you're ready to take your trading to the next level, subscribe to Stock Confidential and get these valuable stock trading tips ebooks FREE.
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