There are no stock tips and no definite plan to trade with stocks. There is no free lunch for you in stock trading or investing. But the best ideas are often simple and you must follow your routine with passion.You have to learn, observe, research and apply what you learnt in real-time. But this post is about some advice gained after experience. It took a lot of time to take these tips into my head and apply in real-time stock trading. Never look out for shortcuts, I am giving it out but go with step 1 and continue to complete all of them. Learn to do more than others and that’s where the rewards come.
Never lose hope and never give up,
so start reading.
- Losses are part of life and everyone gets it. If you are a new investor, don’t worry about small losses. Small losses avoid you from making huge mistakes, it is good to cut your losses early.
- Stop-loss percentage that I maintain would be 6 percentage and not below that. If I bought a stock for investment and it drops below 6 percent from the buying cost, I would sell it and stay on cash.
- Never worry too much, following your routine is the key to success.
- It will take a lot of time to be success and to be a master; you must work hard every single day. Warren Buffett reads 500 pages every day. It may be difficult for us to read 500 pages but if you put in practice, you may achieve a similar result in 5 years.
- Consult with a broker who has a good track record in picking the right stocks. If you believe someone, make sure he or she is better than you.
- Never trade or invest with money that you don’t have. Some do trade with money on margins that is a big NO.
- Experience is a great teacher and time is a great healer. Read more books on stocks to educate you. When you are in doubt, take the first step towards success.
- Have you read the one thing? Try from the kindle store on my site. Don’t be multitasking and ruin your ideas. ( sometimes we have less money and we diversify the cash in different options like gold or stocks or future trading, it gives you no returns)
- Have a plan and follow it religiously. Never trade with future markets if you aren’t comfortable. Look at the top investors; they made money only by investing for years.
- Your portfolio should be the end result of different stock scans and the final list must be just 10 stocks.
- Avoid penny stocks because it’s not worthy until there is institutional investment.
- Stop being sentimental with stocks and avoid having false beliefs.
- Make your analysis thoroughly because money is yours. There is no reason in blaming others for your loss.
- Learn technical analysis and fundamental analysis before making an investment.
- Look out for earnings and sales, which is the best factor to consider when investing in a stock.
- Learn to read about the volumes of a stock and that is a key to successful investing.
- Follow chart patterns like “double bottom”, “double top”,” head and shoulder pattern” and “cup/handle” as they are always rewarding.
- History repeats itself. Utilize the market crash to invest 50 percent of your holdings and sell after 10 years. Every fall is an opportunity to invest and make more returns in the future.
- Be optimistic even during the tough times. Have an alternate income stream to be on the safer side.
- Be a bull and a bear as well. Market rewards one who is more flexible.
- Keep trading, keep investing, Just keep the basics right!