1) You can’t beat the old adage, Buy Low, Sell High. Whenever you can find a stock that is undervalued and likely to rise, buy it!
2) Use so-called Candlestick charts. Although learning to use them can confound some beginners, you’ll come to see that you can’t be a successful investor unless you’re adept at employing your candlestick charts. Nothing can replace that level of ‘at a glance’ information. Just about every successful trader is experienced with candlestick charts.
3) If an investment sounds too good to be true, it probably is. Take all the time you need to ascertain the reputation of the company you choose to invest with.
4) Get knowledgeable with the various strategies employed by successful day traders. Become familiar with the terms such as Scalping, Fading, Daily Pivots and Momentum. These are valuable metrics that can dramatically increase your chances for success – and can help you to prevent losses in your investment portfolio.
5) Always set a stop-loss to protect you from the wild price swings that occur in this part of the market. Although gains can be stupendous, potential losses can be terrifying for those without the protection of stop-loss triggers.
6) For day-traders, utilizing proven investment strategies are of prime importance. Chasing profits on the spur of the moment might be great fun and sometimes rewarding, but has been proven again and again, to result in poor returns. Create an investment plan that you feel comfortable with.
7) Avoid so-called Frictional expenses. Those are fees that don’t create any additional wealth, but merely siphon your profits away. A reasonable effort must be devoted towards finding low-fee or no-free brokerages.
8) Know your tax rules. Always consider obtaining professional legal advice before you invest, and at any time you choose a different investment vehicle.
9) Find out about alternative passive investments that can strengthen your portfolio without too much effort on your part, which can allow you to spend more of your valuable research time on other opportunities.
10) Make sure you’re comfortable with your plan and then stick with it! Make an honest appraisal of your personal strategy and make the necessary tweaks over time.
Suggested Further Reading:
Max Keene (SuperStocks28 staff)