Just my small contribution to this thread...
Always have a plan and always trade that plan! After your decide on a stock you are going to trade/invest...via fundamental analysis, technical analysis, sentiment/momentum analysis or any combination of the above, make sure you do the following...ALWAYS:
1- Always do your own due diligence, be responsible for your own trades/investments. Don't just trust tips check them out.
2- Have a entry point or a trading system entry signal.
3- Have a profit point or a trading system exit signal.
4- Have a stop loss (always mental if you can be there to watch the trade)
5- If your stop loss is reached, always close the trade ASAP, always. Commissions are just too cheap not to. You can always re-asses see rule #8.
6- Once the trade begins to move in a profitable direction tighten up your stop loss and trail it behind the win. If during the run your trailing stop loss is reached, close the trade ASAP, always.
7- Once your profit point or exit signal is reached, take your profits. No one ever went broke taking profits. However, if you are not using a trading system and you decide to ride the win, be sure to stick to rule #6.
8- After you close any trade as a winner or looser and you determine the stock is tradable again, start the process over.
9- If you have traded a stock three times and each has been a loosing trade, find another stock to trade. You can't read them all. Never try to get even with a stock, move on and find one you can win with.
Those are my NINE Trading Rules...simple but they work for me...<g>
Regards,
LG
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