By: The Traders Haven
It s a fact. If you trade, you will lose money. Even the best traders aren t able to predict the market 100% of the time. The objective is to be right more times than wrong. The ability to to do this often takes time and experience. Practice doesn t make you perfect here but it can make you profitable. Below are a few tips that may leas the way to profitable trading.
1. Protect your principal. A good rule of thumb is to never bet more than 10% of your principal on one trade. And never bet everything on one single trade. By moderating your risks, you ll live to trade another day.
2. Know why you are placing the trade. Have you looked at all of the market conditions and indicators to assure they are optimal? Don t trade just to trade. A good trader knows when to jump in and when to just stand by the sidelines.
3. Never hold a losing trade overnight. Stocks can gap up or down when the market opens. Holding a losing trade overnight exposes you to a large amount of risk.
4. Get your money and get out. Greedy traders often take big losses rather than big profits. When you have a reasonable profit, take it.
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1. Protect your principal. A good rule of thumb is to never bet more than 10% of your principal on one trade. And never bet everything on one single trade. By moderating your risks, you ll live to trade another day.
2. Know why you are placing the trade. Have you looked at all of the market conditions and indicators to assure they are optimal? Don t trade just to trade. A good trader knows when to jump in and when to just stand by the sidelines.
3. Never hold a losing trade overnight. Stocks can gap up or down when the market opens. Holding a losing trade overnight exposes you to a large amount of risk.
4. Get your money and get out. Greedy traders often take big losses rather than big profits. When you have a reasonable profit, take it.
[Read full article]
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