| Want to make money trading stocks online? If you | | | | drop precipitously tend to keep dropping. Don't step |
| follow these five simple tips, you'll be way ahead of | | | | in front of a speeding train. Instead, find stocks |
| the pack. | | | | which are healthily moving up and will keep moving |
| 1) Listen to the charts | | | | up. Think of it not as "buy low and sell high," but "buy |
| You may have found a great stock, and it could | | | | high and sell higher." |
| have the best fundamentals in the world, but here's | | | | 4) Ignore the people on TV |
| the truth-- that's not enough! Even if a stock has a | | | | There is no shortage of media personalities who love |
| million fundamental reasons to go up, it's not going | | | | to recommend stocks. Follow their advice and you'll |
| anywhere unless people are buying it. People don't | | | | become rich, right? Wrong. If you could make millions |
| always act rationally, so you can't assume that a | | | | by following the guy on TV, everyone would be rich. |
| stock will behave as it should. That's where technical | | | | You've got to do your own homework. You see, it's |
| analysis (chart reading) comes in. By learning to read | | | | not necessarily that the people in the media don't |
| charts, you can spot stocks that are poised to move | | | | know what they're talking about. They often do. It's |
| up, or conversely, stocks hopelessly headed down. | | | | that by the time that information reaches you, it's |
| Reading stock charts will allow you to find stocks | | | | too late! Think about it...there are professionals who |
| which actually will move up, not just stocks you think | | | | spend all day looking for the next great stock to buy. |
| should move up. | | | | Do you really think that by the time a stock pick |
| 2) Use stop losses | | | | reaches the general public on TV, the smart money |
| No one is ever right 100% of the time. That's just | | | | hasn't already bought it? Of course it has, and by the |
| the nature of the game. Even the best stock pickers | | | | time the little guy buys himself, he's left holding the |
| sometimes pick lemons, but that's not necessarily a | | | | bag. If you want to make money trading online, |
| problem. Picking losers, which is inevitable, is only a | | | | you've got to think independently. Otherwise, you'll |
| problem if you let them kill your account. You | | | | be behind the curve. |
| absolutely must set stop loss orders every time you | | | | 5) Don't overpay on commissions |
| make a trade, otherwise you may wake up and find | | | | Let's say you start trading stocks online with one |
| your entire account decimated. Remember, to make | | | | thousand dollars. Now let's say you're paying ten |
| money trading stocks online, you don't always have | | | | dollars per trade. And finally, let's assume you make |
| to pick winners-- your winners just have to be bigger | | | | thirty trades per month. If you do the math, you'll |
| than your losers. You accomplish this by always | | | | see that you're doomed regardless of how good |
| cutting your losers early, and then letting your | | | | your stock picks are! People often get so excited |
| winners run. | | | | about trading stocks online, they forget about all the |
| 3) Don't step in front of a speeding train | | | | money wasted on commissions. If you want to be |
| One of the biggest myths about making money by | | | | successful over the long term, you have to find a |
| trading stocks online is that you have to buy low and | | | | broker with low enough commissions for your trading |
| sell high. That's a very dangerous way of thinking. | | | | style. With some brokers charging as low as one |
| Why? Because people, searching for stocks to buy | | | | penny per share, there's no reason to waste all of |
| low, eagerly buy stocks which are spiraling | | | | your money in fees. In this way, researching online |
| downward. They hope, often falsely, that soon after | | | | brokers is just as important as researching stocks. |
| they buy the stock, it will turn around, go higher, and | | | | Keep in mind these five tips and you've already set |
| then they can sell for a profit. But ask any | | | | yourself up for success in trading stocks online. Good |
| experienced trader and he'll tell you that stocks which | | | | luck! |