Adaptation in Trading Stocks

You should always adapt yourself to the changes happening in the market now. Do not wait too long to act.For example you see an opportunity. a given stock let say xyz is going up. So you decide to enter a trade.After you enetered the stock does down and does not stop going down.Now what can you do? Do you want to adapt and get out when the price hits your stop loss or wait and hope that the market will come back again?Well adaptation is you change your attitude when the market changes.There is no commitment in trading. You are not going to marry the stock. You are only here to make some money if not get out. It is not easy for a beginner to adapt. So you need patience and a lot of practice to reach that level of skill and awareness.

Developing Skills in Trading stocks

Trading is a life long learning process.You should always continue to learn new things by observing the market.A lot of beginner traders stop learning new skills. So they want a tip or news or other famous traders to tell them what to do. A strategy that works in bull markets will never work in bear markets. So a sucessful trader is always adapting himself to changes occuring in the market.Technology software changes every day. So your tools you use should change too. Have a good charting software especially if you are a day trader. Choose the best brokerage firms that fulfill your trading goals.Know about the tools you are using. Master trading orders and their execution.

A Career as a Professional Trader

Trading stocks is a career.So it means you need time, skills and lifelong learning process. It is not a get rich scheme. You should be serious about that in order to achieve your goals.Some traders trade as a part time, others are full time. Now you should decide for yourself according to your goals that you set. No one will decide for you. It is you only who can decide for your future.Do not quit your job until you master the game.

Risk management in Trading Stocks

Trading is risk management as simple as that.If you do not stop a losing trade and continue hoping that the market will come back, you are wrong.That is why you should think of stop loss order before even you put on a trade. The stock price is volatile. So if you wait too long, you will lose more money than planned to lose if you are wrong.My advice is to be careful. Do not give your money for free to other traders.Do what you can do to stop that.

Money Management in Trading Stocks

It is advised to use only one part of your money in your trading account.The reason for that is to be prepared to do other trades.So do not use all your money in one stocks.
If you win in a given trade, try to take half of your profit and send it to your bank account and save it or use it as you like.
If you lose alot of trades, stop trading until you see what is the problem.Obviously you are making mistakes, so it is high time to devote some time so check whats wrong with your strategy or plan.with these three things stated before, you get a balanced account and a good money management.

Do not Trade With Your Bills Money

May be you have read in the news or watch a video that anyone who trades stocks can be rich. So you tell yourself why not me?
The problem you do not have money so you take your paycheck money to trade. Well do not do that please. Never use money that you use to pay your bills. The solution is to save some money that you do not need to pay your bills. Then open a broker account and then trade. Even if you lose your money, if will not affect your day to day life.Consider this money as a tuition to your education. Nothing is free.Trading stocks is a risky business.So in order to succeed you should make plans for your trades and follow them.That's it

Trading versus Gambling

Well alot of traders just gamble. They put on a trade without knowing why?This is what I call kamikaze trading.You say to yourself well I will put on this trade with all the money I have then if I win I will be rich or at least double my money.
A lot of traders do it always and lose their capital. Atfer that they are broke so they can not trade anymore. "No money, No honey".
The solution I propose is to be realistic. You should plan for your trade when you see a real opportunity. Do not use more than 50% of your capital. Then if you see another opportunity you can make it.
Do not gamble, trade wisely and preserve your capital for other opportunities.

Dreaming in Trading Stocks

The problem that faces many beginner traders is that they dream of their money even before they win the trade. You should always stay focused on your trade not on the money that you can get.
Dreaming to be a millionaire is good, but to reach that you should trade well and only spend money when it is in your bank account not in your head.

Make Money in Trading Stocks?

One of the American dreams is to be your own boss.Millions of people choose trading stocks.The problem is that the majority of the traders lose money instead of making money.So what is the catch?Why only few traders make money and the majority lose.
The reason I start this blog is to highlight the psychological feelings that interfere in our trades.