| Stock trading tips are ten a penny. Most will lead you | | | | clean up. |
| to the poorhouse if you are not careful. The reality is | | | | Beware, trend following can be a volatile game to |
| that stock trading is counter intuitive for many | | | | play so ensure you are psychologically fit and |
| people. However, with these special stock trading tips | | | | prepared to deal with prolonged drawdowns. This is a |
| you will discover the secrets some of the most | | | | long term strategy and only those with strong |
| successful traders have long since known. Read on to | | | | discipline will survive. |
| find out what most will never understand. | | | | Stock Trading Tip Number 3 |
| Stock Trading Tip Number 1 | | | | Warren Buffet fans turn away now. Buy strength. |
| Before you have even begun dreaming of buying the | | | | Sell Weakness. If a stock or commodity is making |
| mansion and fancy car with your winnings you have | | | | new highs consider buying. If a stock or commodity |
| to understand risk management. The best traders | | | | is making new lows consider shorting. |
| look for every reason not to trade. If you overtrade | | | | This goes against the established grain of buying low |
| you are being too impulsive and the markets will | | | | and selling high. The reality is that only the truly gifted |
| gobble you up. If you have a stock trading system | | | | and connected will ever have enough information to |
| absolutely stick to it. Its no use bending the rules to | | | | know when a true bargain is available. Otherwise, |
| create a trade you never should take. | | | | consider this; if a stock is making new highs it is |
| Understand how much you will trade per stock | | | | possible that a new long term bull market is emerging. |
| selection. Anyone who trades big chunks of their | | | | After all, a trend has to start somewhere. |
| capital is risking total ruin very quickly. Your first | | | | If the breakout fails then take a quick small loss and |
| responsibility is to survive. When you know you can | | | | wait for another opportunity. Stock trading often |
| do this you can move on and prosper. | | | | sees many failed breaks. You can withstand a |
| Stock Trading Tip Number 2 | | | | number of small losses because the eventual trend |
| The trend is your friend. Heard that one before? It is | | | | which you will be riding will cover those losses and |
| a lot easier swimming with the tide than against it. | | | | pay handsome profits many times over. |
| Quite simply the extremely successful traders of our | | | | Is any of this a secret? Not really. Many books from |
| time from Richard Donchian to Richard Dennis to | | | | the likes of Michael Covel to Curtis Faith detail how |
| Jerry Parker all understood this. | | | | successful these stock trading tips are. The difficulty |
| Many so called absolute return hedge funds are in | | | | is having the discipline and patience to execute your |
| fact devout trend followers. These are not your | | | | strategy. For some it is too much of an ideological |
| Madoff scams or LTCM blow ups. These are the | | | | leap of faith to buy new highs or sell new lows. Look |
| perennial high achievers in the fund rankings. Stock | | | | around and you will notice that extraordinarily |
| trading is a zero sum game and when there is a | | | | successful people tend to do extraordinary things. It |
| financial crisis it tends to be the trend followers who | | | | might be time you did the same. |