How do you invest in stocks?

By | May 30, 2014

How do you invest in stocks?

How do you invest in stocks?
“Stock tips” aren’t really tips whatsoever. To complete effective trades, you need your personal group of buying and selling policy. I follow my very own teams of buying and selling guidelines. Below I’ve given my Dos and Donts. Whether you will employ them is yet another matter.

Do nots

Don’t  trade “cheap” [affordable] stocks. Don’t trade .BB [us dot BB, the Bulletin Board], .PK [us dot PK, the Pink Sheet] O-T-C [Over-the-Counter]. The above mentioned stocks are way too dangerous and volatile.

Don’t trade any stock which trades under $26.51 per share.

Don’t trade any stock that has under 400,000 shares/volume each day. Volume under this will make the stock too dangerous and volatile for that retail trader. Individuals traders with much deeper pockets [getting more income] can trade options with less volume.

Don’t trade any IPOs [Initial Public Choices]. These stocks have no history to follow along with. They’re way too dangerous.

 Don’t trade any stock with under 18 several weeks of buying and selling history.

 Don’t trade from the trend.

Don’t limit stop-loss greater than 8%

Don’t put anymore than 15% in our total buying and selling balance in almost any one trade


Whenever you investigate, should look into the following:

The Income Announcement Date.

This occurs 4 occasions every year, about every 3 several weeks. Different stocks have different EADs.

Should look for stock splits.

Should look into the sector and also the industry.

Should look for the popularity for the reason that stock’s sector.

Check this news for every stock.

 When All of the Dos and Do nots are met upon your “stock research” Plan your trade. Then trade your plan. If everything goes right, you can generate money once the stock rises. You can generate money once the stock goes lower, You can generate money once the stock goes sideways. Usually amounts within the stock exchange are expressed in rates as well as in money.

Here’s a good example: ABC is presently at $27.50 per share. You probably did your looking into and research. This stock passed All of your Dos and Dont’s rules. You’ve your entry at $27.78 or 1% to demonstrate the stock’s trend. Your target is $30.56 or 10% When the trade is going against only you generate losses, you’re going to get from the trade at $25.56 or 8%. This really is so that you can trade a later date. Like a feet note: You don’t put anymore than 15% in our total buying and selling balance in almost any one trade. If our balance is $10,000 we don’t put anymore than $1,500 into any trade. Our entry is $27,78. We are able to buy 50 shares of ABC.

You are able to usually do do business with  a totally free paper buying and selling platform [Virtual paper buying and selling]. You are able to generate a virtual account and almost trade as if you had been buying and selling with your personal hard-gained money. Suretrader provide the free virtual paper trading account. Open a free account and apply our Dos and Don’ts get familiarize on that.

 A great first book is “Trading for Dummies” or “Investing for Dummies“. Read just 5 pages each day. Write in it, make notes in it. underline sentences and paragraphs which impress you.

All the best for your success.

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