| What is a good stock market trading system? A | | | | day trading and dealing with futures, options or |
| good trading system will implement strategy | | | | commodities. Keep in mind that there can be |
| successfully, but will vary depending on your outlook | | | | additional losses over and above your initial |
| on how to trade in the stock market. If you are a | | | | investment if you are trading on margin to increase |
| day trader you may think that selling short is the | | | | your payout when you hit it big. Remember that you |
| way to go and you will use a margin account to | | | | can double your money using margin accounts but |
| double your winnings. If you are a little more long | | | | you can lose many times your initial investment if the |
| term you may look at setting sell points over a | | | | stock you are trying to sell short suddenly shoots up |
| couple of days on a particular market sector. If you | | | | and you are hit with a margin call. |
| are very conservative you may only invest in blue | | | | One of the most productive of all stock trading |
| chip stocks for the long term. | | | | pieces of advice I have ever heard is to invest for |
| You need to decide what your investment goals are | | | | the long run. When I was first able to put money into |
| and how much time you have to reach them before | | | | a 401(k) that my employer matched I put 25% in a |
| you look for stock market trading strategies. What | | | | high yield mutual fund, 25% in a standard capital gains |
| strategies work well for some people may not work | | | | fund and 25% in a conservative Treasury Fund. I |
| for you depending on what you are trying to achieve | | | | found out quickly that the high yield fund made the |
| with your investment portfolio. Strategies will also | | | | most money per share for me as long as the market |
| vary depending on how much you have to spend in | | | | was moving up, but it provided the greatest loss |
| the first place and how much you want to commit to | | | | when the market went down. I also realized that |
| any one kind of investment. | | | | Treasury Funds are mostly a waste of time for |
| One thing that you need to keep in mind no matter | | | | anyone who wants to see profits in the near term. |
| what your stock trading strategy might be in the end | | | | The other great stock trading advice that I have |
| is that you have to keep track of all the costs of | | | | heard is to invest in what you know or are familiar |
| trading so that you can truly assess what profits (or | | | | with. If you like a particular sector of business or are |
| losses) you might be making to decide if your | | | | in a sector that you are confident is growing put |
| strategy is successful. You will have brokerage | | | | your investment there because you will know more |
| account fees, trade fees and management fees if | | | | about the business and be able to spot trends more |
| you do not make the trades yourself. In addition, | | | | quickly than in an area you are not familiar with. |
| there may be interest and margin fees if you are | | | | |