Okay, I'll have a go. I won't include a lot of the good dope in all the how-to-trade books. Super basic stuff, a beginning trader should already know. ANY trader should already know. So if I leave off some basics it is because I ALREADY KNEW THEM BEFORE I made my first trade, same as everyone else.
1. The charts are more important than the news. It doesn't matter why the market is reacting, only that it is.
2. Don't hold cash. Put that money to work, even if you aren't actively trading it.
3. The trend is my friend. (until it isn't, at least, and that can be a surprisingly long time.)
4. Index ETFs and Futures are reliable and literally follow the market and overall sentiment. Bull or bear trend, either way, they are good for nice steady earnings. Individual stocks often are contrary. That can be good. More often that is bad.
5. I am still learning.
Darn. A few more for extra credit.
6. Indicators only indicate. Traders predict, usually based on indicators. Other traders base their trades on their predictions, which they form based on their indicators. When other traders trade, it moves the price. So, timely trading based on indicators, even though it is fundamentally flawed, will result in wins much, much higher than statistically probable.
7. Pick a good entry and everything else is easy. Pick a bad entry and you may as well bail as soon as you see it was bad.
8. Don't chase a rising, or falling, stock. If anything, catch it at a dip vs the Bollingers or a Moving Average.
9. Two small wins or one monster win are enough. Call it a day unless you are committed to spending all day in front of the computer.
10. Don't argue about trading. Just trade.
1. The charts are more important than the news. It doesn't matter why the market is reacting, only that it is.
2. Don't hold cash. Put that money to work, even if you aren't actively trading it.
3. The trend is my friend. (until it isn't, at least, and that can be a surprisingly long time.)
4. Index ETFs and Futures are reliable and literally follow the market and overall sentiment. Bull or bear trend, either way, they are good for nice steady earnings. Individual stocks often are contrary. That can be good. More often that is bad.
5. I am still learning.
Darn. A few more for extra credit.
6. Indicators only indicate. Traders predict, usually based on indicators. Other traders base their trades on their predictions, which they form based on their indicators. When other traders trade, it moves the price. So, timely trading based on indicators, even though it is fundamentally flawed, will result in wins much, much higher than statistically probable.
7. Pick a good entry and everything else is easy. Pick a bad entry and you may as well bail as soon as you see it was bad.
8. Don't chase a rising, or falling, stock. If anything, catch it at a dip vs the Bollingers or a Moving Average.
9. Two small wins or one monster win are enough. Call it a day unless you are committed to spending all day in front of the computer.
10. Don't argue about trading. Just trade.
