| On line stock trading can be both a good thing, and a | | | | day and you find out that while you were away, |
| bad thing... The good thing is, when done correctly, | | | | XYZ company put out a really bad PR (press release) |
| you can profit heavily from good trades... The bad | | | | and the stock dropped to $2 per share... you lost |
| thing is, when done incorrectly you can drain your | | | | 80% of your money. But if you had put a stop-loss |
| stock account faster than you can blink. | | | | at $8, the chances are you will have lost a lot less |
| The ease of opening a stock account online and | | | | than 80%. A good rule of thumb is to set your |
| being able to purchase and sell stocks so simply is | | | | stop-loss at about 20% below your purchase price. |
| marvelous. Technology has come so far... but to | | | | #3: In a crazy market like the current market, don't |
| make profits from trading, you must stick to a few | | | | buy on value ... Today's stock market is up and down |
| rules. And they are... | | | | up and down. Its risky to hold for too long now, |
| #1: Don't buy into hype you hear on TV ... If you | | | | unless you buy to hold for about 30 years, chances |
| heard information on TV that makes you want to | | | | are you will lose. I suggest sticking to technical |
| buy the stock so badly... well, so did 10 million other | | | | analysis when on line stock trading, because these |
| people. Why does this matter? Because stock price is | | | | days, its the only sure way to make some money in |
| driven by supply and demand... the more people that | | | | this market. |
| want to buy, the higher the price goes. What do you | | | | What is technical analysis? |
| think your chances are of buying that stock before | | | | TA is buying and selling based on market indicators, |
| the other 10 million people do? Not very good... | | | | and it very well may be the most profitable way to |
| #2: Know your exit point(sell point) ... If you buy XYZ | | | | trade. I have made profits on 13 of my last 15 |
| stock for $10, then set your stop-loss point right | | | | trades, and my average profit is over 80%. Want to |
| away. Know when you want to call it quits on that | | | | see how I do it? My swing trade techniques are |
| stock, and set it up immediately. The reason? What | | | | found in part two of this article. |
| happens if you go away from your computer for a | | | | |