My Three Favorite Stock Tips
After completing over 1,000 stock trades, representing over 4,000 individual buys and sells, here are three tips I wish I knew and fully appreciated on day one:
Think win/win. Psychology is a huge aspect of trading. If you have a big winner on your hands and aren’t sure whether you should hold the shares to try for higher prices or sell them to lock in a profit, consider selling half and holding the rest with a stop loss (at worst) back at your original buy price. That way, if the stock drops back to your buy price, you still win because you sold half and made a profit. Similarly, if the stock shoot higher in price, you also win because you still hold half your original position. Heads you win, tails you win too. 😏
Set strict rules to help you stay disciplined.
Always know the day and time (pre or post hours) when your stock holdings are posting earnings next!
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Kittykiki : Awesome
Knulp :
Gopi :
CharlieFuchstick : that's good advice I have been trading with only moderate success for a long long time I was very very happy with merely moderate success because I profited through recessions as well but I get stuck in a rut of never going for more, I learned something new, I never fully understood stop loss so I didn't use it I always settled for smaller profits. I may be dense but what is the third rule?
Clownarado CharlieFuchstick : earnings
CarlLee : I like the advice.
BeautifulDay : Can You Please Explain The 3rd Rule A Little Bit More? For example, I am holding a stock which has come out next week. Should I sell it? Also don't buy stocks that has happened on that day or next day? thanks!
Clownarado : @BeautifulDay I've been playing not to hold stocks through investors. YOU MAY WANT TO TRY TO SEE IF YOU ARE GOING TO BE POSITIVE OR NEGATIVE AS THIS MAY MOVING WHAT A STOCK MAY DO
I would say sell at a price you like before you started because you can always buy back in after. Lock in as much profit as possible or only sell part of your holding if the company looks good.
I'm starting new to trading so that's just what I heard
BeautifulDay Clownarado : Ok I want to eat now. Lockdown my profit. If it goes down, I can buy them again. If it goes up, I will buy again then.
Allen OP Clownarado : Great idea, inspiration it.
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