5 Simple Tips

Investor Place offers 5 simple tips for successful stock trading.

1. Never place market orders (those with no specified buy or sell price) before the opening of the trading day.
2. The best time to trade “at the market” is usually in the afternoon, from about 1 to 2:30 p.m. EST.
3. Always check the “bid size” and the “ask size” for any exchange-listed stock before entering a buy or sell order.
4. The best time of the month to buy stocks is around the 18th through the 22nd.
5. For the most part, choose stocks to buy that are trading above $10 a share.

Tips 1 and 2 have to do with trading with accurate market information. Tip 3 has to do with the process of trading. Tip 4 deals with predictable market patterns and tendencies. And tip 5 has to do with accuracy of the technical analysis tools so important to day traders. These tips are about how to Succeed at stock trading if you already have the basic skill sets and tools.

How to Start If You Want to Succeed at Stock Trading

Advice from RightLIne.net for how to succeed at online stock trading is more basic and more appropriate for beginners.

1. Choose you trading style carefully.
2. Match your trading style to your lifestyle
3. Select a broker that matches your trading style
4. Use a low-risk high-reward trading method
5. Make sure your trading method works in all markets
6. Trade the Best Stocks
7. Know when to sell your stocks
8. Check your winning edge.
9. Invest in a good online stock trading education.
10. Associate with successful online stock traders.

This is a good checklist to paste to the wall above your work station so that you see it every day. Successful trading comes from trial and error. Having good advice as you go is critical. More important is continual assessment of how you are doing and readjustment of you method.

Don’t Lose Money

There is a famous quote from a famous investor, Warren Buffet. The first rule of investing is not to lose money and the second rule is to not forget the first. This is doubly important in stock trading. If you lose 50% of your money in a trade you cannot make it up by making 50% on the next one. You need to double your money in order to recover and you will need a little more to cover fees and commissions. Smart traders hedge their risk by repeatedly setting trading stops during the day. Swing traders often use stock options in order to leverage their trading capital and limit their risk. Read the articles and start slowly. Ask advice as you go.