STOCK TRADING INVESTMENT

Getting started in stock market investment can be daunting enough, but staying in the game for the long term should be your main goal. You want to make a profit from your trading, am I right? Thought so. Staying alive in the world of investment and trading requires you to be flexible. 

That means you must be able to spring back from the setbacks along the way. It's just a fact of trading that you will lose trades. You simply cannot win every single trade you enter. It's just the way the markets are. And you must deal with those losses in your mind. 

It can affect your emotions when you lose something, so dealing with that in the right way is important. Now let's go over some ways you can learn to stay in the game and make those profits. Keeping stress levels under control Keeping your cool is the way to go in stock market investing, and that means learning how to manage your stress levels. The way to do it is to learn to manage risk well. 

After all, money saved is money earned and if you can avoid a big loss somehow then that's great. In trading I use stop loss orders that will get me out if a trade goes wrong. I strongly suggest you use stops in all your trading especially if you are new to it. 

Taking stock of your current position As a trader you should always be keeping track of your position. Knowing where you stand is always a good idea. You should always be evaluating your position in each trade you have open. This way you will be well equipped to make wise investment decisions. 

For instance you may have reached a point in a trend where you will want to move your stop loss to reduce risk further. Keeping Records for future reference As a trader you should always keep records of all your trades. I know it can be hard when you lose a trade and recording it in a spreadsheet or paper log file is the best way to analyse where you went wrong. I know the trading platform you are using will have a history record of all your trades and profits or losses made. 

But having your own record means you can refer back to them when making future trades and make better trading decisions. Stick to the System If you are like me and use technical analysis as the main tool for your trading decisions its likely you are using a system of some sort. You know the type that lets you know when to enter and exit the market. For those systems to work you must stick to it. 

That means controlling your emotions and not entering or exiting the market on a hunch or even a news item. Most technical analysis systems have a high enough rate of losing trades that means you'll have to ride them out and be patient. You may only win two or three trades out of ten but you'll make your money back plus a profit. Being around in stock market trading long enough to make a profit can be a difficult enough thing to do if you have little patience but it's what it takes to succeed. 

You must adapt and be able to change as the markets change. You cannot predict the markets and so you must understand this. Yes sure you can follow the news and make your trading decisions based on that but most of the time the price is the only piece of information you really need. And with charting software you are at an even greater advantage.