My No. 1 Rule - Invest with a plan
1) Firstly, understand the current economic environment and long term trends, focusing on sectors with opportunities. Generally, S&P companies have demonstrated a long term upward trend, especially for tech. And it is a good place to trade with a strong hand.
2) Investing is about risk and emotion management. Monitor a list of 10-15 stocks. Decide a good time, price and sizing.
a) Price - Only enter if the price and time is right and do not be emotionally attached to a stock. Use technical analysis for good entry. When price cross short term moving average and then longer term average, this is a sign for uptrend. See example from $Sea (SE.US)$ on my preferred entry points.
2) Investing is about risk and emotion management. Monitor a list of 10-15 stocks. Decide a good time, price and sizing.
a) Price - Only enter if the price and time is right and do not be emotionally attached to a stock. Use technical analysis for good entry. When price cross short term moving average and then longer term average, this is a sign for uptrend. See example from $Sea (SE.US)$ on my preferred entry points.
b) Size - Practice dollar cost averaging. Sizing should take into account good risk management. Enter in tranches and make sure that each stock do not exceed 8% of investment portfolio. Practice scenario planning and imagine the downside scenarios and what to do in this scenario. Able to add on positions?
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