Trade Stocks Trading

Learn Stocks Trading


1. Define Simple Stock Trading Rules and Follow the Trend

The simpler the stocks trading system is the better. If the stocks trading system is too complicated, it will be very difficult to stick to the stock trading rules. Complicated stock trading systems are also very confusing. A simple stock trading system makes it easy to follow the trading rules.

2. Eliminate Risk Quickly and Let Profits Run

Minimizing risk is far more important than making money. Our first objective in stock trading is to make the trade less risky. We do this by entering only trade setups, setting stop losses, cutting losses quick and never average down, and letting the profitable trades run for a while, just long enough but not too long so as increase the profits. Profitable stocks trades are only kept open as long as the stock trading system shows the stock trend is in place, these transactions should be closed immediately once your exit signal criteria is generated by the stocks trading system.

3. Choose the Right Stock instruments

Once you have your stock trading system, you will want to start testing it on a demo stocks trading account. A stock trading system will give different results for each stock.

To maximize the profitability of your stock trading system find the most active stock market hours for a chosen stock trading instrument and trade during that market session only.

4. Use Stock Trading Money Management Rules

Always risk less than 2% per stock trade transaction. With compounding, you will be surprised to see how quickly your stock trading account grows once you start to trade with a profitable stock trading system.

5. Keep a Stock Trading Journal

Keeping a log of all your stocks trades will help you to become a better and better and will help you follow the trading rules of your stocks trading system. A stock trading journal will also keep track of your profitable stocks trades and losses and you can analyze why a trade setup was profitable and why it was not.

6. Set take Profit Targets

Establish a daily, weekly or monthly profit targets when trading the stocks trading market. Once you hit this target. This will stop you from over-trading and will also stop you giving back your profits the stocks trading market. Keep your reward to risk ratio high, a 3:1 reward to risk ratio is best. This means opening stock trade transactions only when you have the probability of making three times what you are risking.

Example of signals generated by ourstock trading system

Example 1: Buy Stock Trading Signal and Sell Stock Trading Signal Generated By Stock Trading System

Buy signal is generated by the indicator based stock trading system

Buy signal is generated by the indicator based stock trading system, then an exit signal is generated before another reverse sell stock signal is generated on this stock chart

Example 2: Two buy stock signals generated by Stock Trading System

Two buy stock signals are generated during the upward stock trending market

Two buy stock signals are generated during the upward stock trending market


Example 3: Exit Signal Generated by Stock Trading System

Examples of Stock Trade Signals Generated by a Stock Trading System

Examples of Stock Trade Signals Generated by a Stock Trading System

Other Tips

Learn Stock Education

The first tip is to learn about the Stock Trading Market (Learn Stocks Lessons), those who don't learn the required stock trading knowledge from the various stock trading tutorials online will not improve their stock trading results no matter how many tips they have read. By not learning stock trading, these stock traders will keep making the obvious mistakes made by stock trading beginners without even realizing what they are doing, Stocks is a wide topic and in order to make profits a stock trader will have to learn stock trading first.

Get a Stock Trading System

A stocks trading system is a must for every stock trader, a stocks trading system is used to determine what stock trading decision to take. A stock trading system gives a stock trader an edge over others who don't have a stock trading plan. A good stock trading plan is one that is back-tested and proven to produce profitable stocks trades. After coming up with your stock trading system you should back-test it on a Demo Stock Trading Account.

Learn Stock Trading Money Management

Learn about The Various Stock Trading Money Management Lessons, don't attempt to trade the online stock market if you do not have stock trading money management guidelines. The 2 stock trading management lesson that you must learn are:

What is Stock Trading Money Management

Stock Trading Money Management Strategies

Learn about Stock Trading Leverage and Margin

If you don't know what is stocks trading leverage and how it works and how it can affect your stock trading margin, then you will not make any money in the stocks trading market and you will lose your money in the stocks trading market.

Have a Written Stock Trading Plan

A stock trading plan will take into account all the above stock trading tips and summarize them within one document that you can use to trade the online stocks market.

Download Stock Trading Plan

In General

The first goal should be taking your time to really determine what your stock trading goals are and how much money you wish to make. Once this is determined then the following three suggestions will help you on your way to start Stock Trading. It is essential to keep all the three goals in mind when executing all of your stock trade transactions but at the same time this is not a black and white guide to stock trading success.

The first thing is to remember that you really need to work with short term stocks trades until you become profitable and know how to properly monitor these stock trade transactions. You should trade stock trading short term because this way you can monitor your stock trading positions and quickly close any stock trading position whose trading signal setup reverses. In order to truly benefit from the stock trading system you have to be willing to take up the effort to watch the stocks trading market to see exactly how long you can keep your money invested in the online stocks market. Making short-term stock trading investments will help you to monitor your stocks trades and control all the risks, do not leave stock orders open when you are away from your computer or when you are going to sleep, close all stock trade transactions and only open stock orders when you can monitor them.

Although it is very important to increase the amount of stocks trades that you are investing each time that you trade - some stock trading guidelines should to be followed. The general rule of stock trading tends to be never to trade more than two percent of your total stock trading account equity. This of course makes sense when you have a lot of money in your stock trading account but what if you only have a couple of hundreds. Two percent of $10,000 equals out to be $200. Even though it is safer to follow this rule it really does not make a lot of economic sense with smaller stock trading accounts. If you are investing on Stock this is when stock trading leverage kicks in to effect and makes all of the difference. In General the more stock trading capital you have to invest the better in terms of stock trading money management.

The final suggestion is taking a bit of time to make sure that you get all of your stock trading details correct before opening any one trade transaction, this will be the best method. Keep it simple makes just as much sense in stock market than anywhere else. Although this may require more time and effort to build up your stock trading profits it will save you money in the long term.

Trying to keep your thinking as clear as possible will make your stock trading journey easier but knowing when to break from the norm is also important. Moving towards the right path will make success that much more easier to obtain and by learning all of the steps and logic you will be able to continue making profits. Stock is not hard to learn but a lot of traders lose money quickly because of not taking the proper steps in preparation and learning.


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