These are simple but they changed my trading immensely. What tip (or 2) would you give to a new investor or trader?
How many times has this happened to you? You're "in" a stock certain you're certain it's a winner. You place a $1.00 stop because after all you don't want to lose more than $100.
The next thing you know you're stopped out, only to see it reverse and head higher without you. Was it your execution? Is the market a rigged game? Are they out to get you.....or was it the $100 you were willing to risk? Was it, in fact, large enough?
Here are a few basics I've learned since I began actively trading:
- I don't buy a the open. I wait for the opening drive to dip down, possibly even test the prior days mid-to low area OR I have a standing order waiting at a major moving average or fibonacci area (I love fibonacci!).
- I had to erase the thought of risking $1.00 on a trade (unless it's a small stock). Period. Zip. Hands down. Put it out of my head. After all, i