Trading on the stock market is a great way to achieve financial independence but the road is littered with obstacles and hurdles that will most certainly see you lose your investments. Yes you can make money on the stock market but without the right advice as I say will make you a stock market loser no doubt. We don't want you to be a loser, so here are some simple tips to becoming a winner.
First of all, it's best to employ a broker to handle all your trades. A broker can execute all your trades for you, and nowadays you can find a broker online. Some people still prefer to have a broker via telephone and that's fine. The problem with online trading is that it can be too easy to make a bad trading decision. Worth mentioning it is best that you never take stock tips from a broker. You are the trader and your decisions are your own and not the brokers.
Although you can employ a broker to do all your analytical work for you, that is perform some technical analysis, I find it is best to use charting software. Such programs have databases that can analyse historical data at the click of a mouse and it will save you countless hours of having to trawl through newspapers every day to find the information you need. I won't recommend and particular software here although the one I use is called Sharescope. With it I can filter new market highs and lows as well as draw trend lines.
It's all good having the right software on your computer and sound fundamental and technical analysis but without an exit strategy you are sure to close trades just before they become profitable. Far too often the trader will base the closing of his trades on pure emotion. It's emotion that causes the market changes but when it comes to making an exit, you must have a strategy set in stone before you make the trade. This way you can cancel out any bad decisions based on your emotions. And even stories on the news can see you make bad decisions and therefore losing trades.
Trading isn't easy, and the road to success with it can be long and sometimes you can feel like you are going to lose your entire investment because of one or two losing trades. Stay strong, stay focussed on the long term and you will eventually find your way in the world of stock market investing.
First of all, it's best to employ a broker to handle all your trades. A broker can execute all your trades for you, and nowadays you can find a broker online. Some people still prefer to have a broker via telephone and that's fine. The problem with online trading is that it can be too easy to make a bad trading decision. Worth mentioning it is best that you never take stock tips from a broker. You are the trader and your decisions are your own and not the brokers.
Although you can employ a broker to do all your analytical work for you, that is perform some technical analysis, I find it is best to use charting software. Such programs have databases that can analyse historical data at the click of a mouse and it will save you countless hours of having to trawl through newspapers every day to find the information you need. I won't recommend and particular software here although the one I use is called Sharescope. With it I can filter new market highs and lows as well as draw trend lines.
It's all good having the right software on your computer and sound fundamental and technical analysis but without an exit strategy you are sure to close trades just before they become profitable. Far too often the trader will base the closing of his trades on pure emotion. It's emotion that causes the market changes but when it comes to making an exit, you must have a strategy set in stone before you make the trade. This way you can cancel out any bad decisions based on your emotions. And even stories on the news can see you make bad decisions and therefore losing trades.
Trading isn't easy, and the road to success with it can be long and sometimes you can feel like you are going to lose your entire investment because of one or two losing trades. Stay strong, stay focussed on the long term and you will eventually find your way in the world of stock market investing.
Written by Djelloul
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