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