http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
Sound Stock Trading Practices
There are a number of potentially profitable day trading strategies and strategies for medium and longer term trades. But, in order to reliably turn strategy into profits year in and year out, one needs to engage in a number of sound trading practices. Sound stock trading practices for the day work as well for the longer term. Sound stock trading practices start with not being greedy and taking a little money off the table as profits mount up. They include managing fear and greed and sound stock trading practices always include both a clear head for fundamentals and both eyes on the market.
Take a Little Money off the Table
A confirmed day trader may say that setting your trading stops is all that is necessary to protect profits and guard against loss. However, if you are staying with a trade over night the stock may gap up or down in the morning and not only erase your profits but leave you with substantial losses. If you are not going to be able to control the trade for any period of time take a little money off the table to guarantee your gains. Likewise, you may be in the middle of a profitable trading day when your internet connection goes down. If you have set your stops in time you may be OK. But, you are in no position to trade until your connection is up and running again. Sound stock trading practices include taking a little money off the table when you are winning. After all, you have not earned any money until that money in hand, or at least back in your brokerage account and out of any trades.
2. There are a number of
potentially profitable day
trading strategies and
strategies for medium and
longer term trades.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
3. But, in order to reliably turn
strategy into profits year in
and year out, one needs to
engage in a number of sound
trading practices.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
4. Sound stock trading practices
for the day work as well for
the longer term.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
5. Sound stock trading practices
start with not being greedy
and taking a little money off
the table as profits mount up.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
6. They include managing fear
and greed and sound stock
trading practices always
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
7. include both a clear head for
fundamentals and both eyes
on the market.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
8. Take a Little Money off the
Table
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
9. A confirmed day trader may
say that setting your trading
stops is all that is necessary to
protect profits and guard
against loss.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
10. However, if you are staying
with a trade over night the
stock may gap up or down in
the morning
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
11. and not only erase your
profits but leave you with
substantial losses.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
12. If you are not going to be able
to control the trade for any
period of time take a little
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
13. money off the table to
guarantee your gains.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
14. Likewise, you may be in the
middle of a profitable trading
day when your internet
connection goes down.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
15. If you have set your stops in
time you may be OK.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
16. But, you are in no position to
trade until your connection is
up and running again.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
17. Sound stock trading practices
include taking a little money
off the table when you are
winning.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
18. After all, you have not earned
any money until that money in
hand, or at least back in your
brokerage account and out of
any trades.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
19. The Twin Demons of Fear and
Greed
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
20. Smart traders make money
from the fear and greed of
others.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
21. Sound stock trading practices
include the use of technical
analysis tools to track market
sentiment.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
22. Using these tools one can
profit from price action in day
trading.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
23. When the market moves
rapidly, too many traders
throw their strategy away and
follow their gut impulses.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
24. These traders are often driven
by fear and greed.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
25. If you have no idea of what
you are doing and no plan, do
not trade.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
26. Sound stock trading practices
never resemble a trip to the
casino.
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27. Anyone who knows a few
words of Spanish knows that
casi no mean almost never
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
28. which is how often you will
make a profit if you do not
routinely follow sound stock
trading practices.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
29. The Fundamentals Determine
the Eventual Price
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
30. Scalping in day trading can be
very profitable in a volatile
market.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
31. But no matter how crazy the
market may seem, it will
eventually come to a
consensus.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
32. While technical analysis leads
to way to short term profits a
trader is well advised
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
33. understand the fundamentals
that drive the stocks that he
trades.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
34. Having a clear idea of where
the price will eventually end
up is one of the most sound
stock trading practices.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
35. Listen to what the market is
telling you and listen to what
the fundamentals say and
combine these two to make
profits in trading stocks.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices