When trading in the stock market, position sizing is where all the tools of money management come together. It is perhaps the most important part of your stock market money management rules. Position sizing is simply deciding how much you are going to enter any one stock market trade. You can calculate your position size…
Tag: trading
The Seven Mistakes All Novice Traders Make and How to Correct Them
We learnt the following the hard way! If any of these things applies to you, do not worry – there is a simple solution! Lack of Knowledge and No Plan It amazes us that some people expect to trade the stock market successfully with no effort. Yet if they would like to take up golf,…
Traders, Defend Against the Dreaded Death Spiral.
It’s often been said that there’s only two ways to get hurt really bad on a stock exchange, becoming caught in a”death spiral” by not using DTM: Decisive Trade Management in the means of stop loses and using a stock stopped on you. Halts you have zero control over. Death spirals are of your own…
How To Make, And Keep, Money Trading Stocks
If you’re serious about making and keeping money by trading stocks, then there are 3 things you will need to do, and do well. Money management Orders Trading system Money management Money management comes first. Without a rock-solid way of managing your trading funds, you trading results will be only be fair at best. Money…
12 Basic Stock Investing Rules Every Successful Investor Should Follow
There are lots of important things you want to know to trade and invest successfully in the stock exchange or some other market. – Buy low-sell high. As straightforward as this concept seems to be, the huge majority of investors do the exact opposite. Your ability to consistently buy low and sell high, will determine…