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