Sound Stock Trading Practices

Sound Stock Trading Practices

By profitabletradingtips.com

There are a number of
potentially profitable day
trading strategies and
strategies for medium and
longer term trades.

http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices

But, in order to reliably turn
strategy into profits year in
and year out, one needs to
engage in a number of sound
trading practices.


Sound stock trading practices
for the day work as well for
the longer term.


start with not being greedy
and taking a little money off
the table as profits mount up.


They include managing fear
and greed and sound stock
trading practices always


include both a clear head for
fundamentals and both eyes
on the market.


Take a Little Money off the
Table


A confirmed day trader may
say that setting your trading
stops is all that is necessary to
protect profits and guard
against loss.


However, if you are staying
with a trade over night the
stock may gap up or down in
the morning


and not only erase your
profits but leave you with
substantial losses.


If you are not going to be able
to control the trade for any
period of time take a little


money off the table to
guarantee your gains.


Likewise, you may be in the
middle of a profitable trading
day when your internet
connection goes down.


If you have set your stops in
time you may be OK.


But, you are in no position to
trade until your connection is
up and running again.


include taking a little money
off the table when you are
winning.


After all, you have not earned
any money until that money in
hand, or at least back in your
brokerage account and out of
any trades.


The Twin Demons of Fear and
Greed


Smart traders make money
from the fear and greed of
others.


include the use of technical
analysis tools to track market
sentiment.


Using these tools one can
profit from price action in day
trading.


When the market moves
rapidly, too many traders
throw their strategy away and
follow their gut impulses.


These traders are often driven
by fear and greed.


If you have no idea of what
you are doing and no plan, do
not trade.


never resemble a trip to the
casino.


Anyone who knows a few
words of Spanish knows that
casi no mean almost never


which is how often you will
make a profit if you do not
routinely follow sound stock
trading practices.


The Fundamentals Determine
the Eventual Price


Scalping in day trading can be
very profitable in a volatile
market.


But no matter how crazy the
market may seem, it will
eventually come to a
consensus.


While technical analysis leads
to way to short term profits a
trader is well advised


understand the fundamentals
that drive the stocks that he
trades.


Having a clear idea of where
the price will eventually end
up is one of the most sound
stock trading practices.


Listen to what the market is
telling you and listen to what
the fundamentals say and
combine these two to make
profits in trading stocks.


Sound Stock Trading Practices

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