Trading Tips and Resources:
1. Learning is essential…prepare as if you are obtaining a degree. There are many methods to trading so you will have to discover your preferences.
2. Technology is important. Quick access and speed to process orders and receive information is a must.
4. Practice, Practice Practice…. Open a paper trading account first and monitor your success. Ameritrade.com allows $100,000 paper trading…so no real money loses can occur until you have your confidence and rhythm, then begin trading real $.
5. Trading size is important, learn it! You must know how to pace yourself with the size of your trades, define real targets for both profit and loss and stick to your plan. Traders that do not do this blow their accounts up quickly. Cost averaging and stops (both profit and stop losses) are key to your success.
6. Price does matter and you must establish a pricing strategy. Set a win/loss goal for each trade that includes your commission fee and then stick to your goal.
7. Trading rules prevent more than 3 trades in 5 days on accounts less than $25,000. Suretrader.com does not have this rule so it is much easier to build account size using this platform.
8. Your $ once trading real money is never locked. Always remember that you are in control of your trade.
9. Cut bad trades loose quickly. This is not a competitive sport and the sooner that you realize the trade is only as good as the moment and can change direction at any minute the better you will be. Accept the fact now…you will lose from time to time. Staying in bad trades with determination that it will turn around is not a strategy for success.
10. Do not day trade until you have mastered swing trading.
11. Remember you are using your money and you are completely responsible for the outcome of the trade. While you may depend on others for information and teaching, you are only ready to trade when you can make your own decisions. Following chat rooms and financial boards for entry and exits alone with destroy your account.
You are about to embark on a financial journey that could enable great things for you and your family. Learn, trade smart, and build your wealth!
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