| Want to make money trading stocks online?
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| | tend to keep dropping. Don't step in
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| If you follow these five simple tips,
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| | front of a speeding train. Instead, find
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| you'll be way ahead of the pack.
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| | stocks which are healthily moving up and
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| 1) Listen to the charts
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| | will keep moving up. Think of it not as
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| You may have found a great stock, and it
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| | "buy low and sell high," but "buy high
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| could have the best fundamentals in the
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| | and sell higher."
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| world, but here's the truth-- that's not
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| | 4) Ignore the people on TV
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| enough! Even if a stock has a million
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| | There is no shortage of media
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| fundamental reasons to go up, it's not
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| | personalities who love to recommend
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| going anywhere unless people are buying
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| | stocks. Follow their advice and you'll
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| it. People don't always act rationally,
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| | become rich, right? Wrong. If you could
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| so you can't assume that a stock will
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| | make millions by following the guy on TV,
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| behave as it should. That's where
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| | everyone would be rich. You've got to do
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| technical analysis (chart reading) comes
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| | your own homework. You see, it's not
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| in. By learning to read charts, you can
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| | necessarily that the people in the media
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| spot stocks that are poised to move up,
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| | don't know what they're talking about.
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| or conversely, stocks hopelessly headed
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| | They often do. It's that by the time that
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| down. Reading stock charts will allow you
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| | information reaches you, it's too late!
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| to find stocks which actually will move
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| | Think about it...there are professionals
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| up, not just stocks you think should move
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| | who spend all day looking for the next
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| up.
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| | great stock to buy. Do you really think
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| 2) Use stop losses
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| | that by the time a stock pick reaches the
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| No one is ever right 100% of the time.
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| | general public on TV, the smart money
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| That's just the nature of the game. Even
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| | hasn't already bought it? Of course it
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| the best stock pickers sometimes pick
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| | has, and by the time the little guy buys
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| lemons, but that's not necessarily a
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| | himself, he's left holding the bag. If
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| problem. Picking losers, which is
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| | you want to make money trading online,
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| inevitable, is only a problem if you let
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| | you've got to think independently.
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| them kill your account. You absolutely
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| | Otherwise, you'll be behind the curve.
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| must set stop loss orders every time you
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| | 5) Don't overpay on commissions
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| make a trade, otherwise you may wake up
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| | Let's say you start trading stocks online
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| and find your entire account decimated.
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| | with one thousand dollars. Now let's say
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| Remember, to make money trading stocks
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| | you're paying ten dollars per trade. And
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| online, you don't always have to pick
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| | finally, let's assume you make thirty
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| winners-- your winners just have to be
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| | trades per month. If you do the math,
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| bigger than your losers. You accomplish
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| | you'll see that you're doomed regardless
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| this by always cutting your losers early,
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| | of how good your stock picks are! People
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| and then letting your winners run.
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| | often get so excited about trading stocks
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| 3) Don't step in front of a speeding
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| | online, they forget about all the money
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| train
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| | wasted on commissions. If you want to be
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| One of the biggest myths about making
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| | successful over the long term, you have
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| money by trading stocks online is that
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| | to find a broker with low enough
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| you have to buy low and sell high. That's
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| | commissions for your trading style. With
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| a very dangerous way of thinking. Why?
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| | some brokers charging as low as one penny
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| Because people, searching for stocks to
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| | per share, there's no reason to waste all
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| buy low, eagerly buy stocks which are
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| | of your money in fees. In this way,
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| spiraling downward. They hope, often
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| | researching online brokers is just as
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| falsely, that soon after they buy the
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| | important as researching stocks.
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| stock, it will turn around, go higher,
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| | Keep in mind these five tips and you've
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| and then they can sell for a profit. But
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| | already set yourself up for success in
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| ask any experienced trader and he'll tell
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| | trading stocks online. Good luck!
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| you that stocks which drop precipitously
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