What important to start trading is to start with plan. Investing sucess will not come from your head, but come from your heart. Before you trade, you need to set the limit to get out of the trade. It would be hard to lose money by getting out of trade, but it would be much much better to lose more money in the future.
1% rule of risk management
First step is calculate 1% of your total amount. Let's say you have $100,000 in the account, 1% of that is $1,000. This is the amount you can lose for one trade. Second step is to determine exit point. If you buy stock at $55 per share and decide $53 is exit point, you may lose $2 per share when things don't go like you expect. Third step is to divide 1% of the total account by 2$. 500 shares is what you can buy in one trade.
Fundamental anaylsis indicate you what to buy and sell. Technical analysis indicates you when to buy and sell. Fundamental data is every week, month and quarter. You keep wathcing fundamental data and ratio and need to keep your portfolio updated.
Keep It Super Simple
Price & Volume
Don't over analyze
Moving average is just smoothing the trend. The longer it is, the more smooth it is.
Role reversal
Resistance broken through become support.
No comments:
Post a Comment