Planning

Everyone need to develop their own trading systems as another person system does not suit everyone. You have to find out which style suits you and stick to it instead of changing all the time. Create a set of trading rules for your own style and never deviate from them. Once you have changed tactics once, it will be too easy to keep doing so the next time. You should honestly answer when you ask yourself whether or not you have deviated from the rules at the end of trading for each day.

Keeping Track

Every single question you might want to ask about a trade is in those figures. If you pay particular attention to the volume of each trades as well as to their price you will learn a lot about the stock.

Other people might try to give you advice or opinion but please ignore them. You got to able to recognize what is happening on your own. Only enter a trade when you yourself believe that there has been a signal to sell or to buy for that particular stock. In this way you will have worked it all out for yourself rather than rely other people's guesswork.

Protect Yourself

For any one single trade, it is advisable that you should allow yourself to invest no more than 2 1/2 per cent of your bank at the time. There are times despite all that you have done, the trade will move in the wrong direction so make sure that you know the maximum loss that you will accept. Initially, try not to lose more than ten per cent on any trade with your capital. You can set up a stop online order which will make sure that you are not tempted to try to get back your losses.

When the stock trade does go in the direction you envisaged you should also know how much profit you will take. Just because the stock has traded the right way, it does not mean that it will continue to do so, it could change direction at any time.

Do Your Best

Stock market trading are one of those tense occupation. When you are in it, you are going to learn a lot more about yourself as a trader from the bad trades than from the good ones or even from analyzing the figures. You cannot succeed if you start to panic when you see a loss early during each trade. Neither must you be happy to take a small profit when you had initially planned on a big one. As a trader, you must stick to where you will take the profit as well as how much loss you will accept.

Don't Get Emotional

Never fall in love with any one company or any particular shares. Just enter a trade as a trade, set up an automatic stop loss figure, set up an automatic profit level, and then sit back and forget about that trade. You should have the self-confidence to do that if you did your research diligently. There is no magic formula even though you might think there is to becoming a winning trader and nothing special you need to do. All you need to do is to gather all the information that you can about trading stocks, work out your own trading strategy and then stick to it without wavering a single bit.

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