Here are a few basics:
- Concentrate on a few, liquid and volatile stocks only.
- Buy or sell intra day trends with at least 3:1 reward-risk ratios.
- Use mental stops placed under the last minimum (above the last maximum, when shorting) and stick to them.
- Use a decent money management scheme, write down the rules and stick to them.
- Develop a system, trade it on paper only for some time, before risking money.
- Concentrate on a few, liquid and volatile stocks only.
- Buy or sell intra day trends with at least 3:1 reward-risk ratios.
- Use mental stops placed under the last minimum (above the last maximum, when shorting) and stick to them.
- Use a decent money management scheme, write down the rules and stick to them.
- Develop a system, trade it on paper only for some time, before risking money.
Here are some more, that I found useful too:
- Don't trade the first and last half hour.
- Stop trading on a given day when you have reached a set target amount or when you have lost a fixed amount.
- No more than two ongoing trades at one time.
- Take breaks, it's a stressful activity
Ask a question or leave a reply