In this session of our Blog, we've boiled down some of our most trusted and crucial trade practices into 25 tips that we think will help to make you a better stock trader/investor.
Successful traders have to move fast, but they don't have to think fast. Why? Because they've developed a trading strategies in advance, along with the discipline to stick to that strategy. It is important to follow your formula closely rather than try to chase profits.
There's a mantra among day traders: "Plan your trades, then trade your plan."
There's a mantra among day traders: "Plan your trades, then trade your plan."
Stock and Options Trading are both difficult to master, requiring time, skill and discipline. Many of those who try it fail. But the tips and guideline we have described below can help you create a profitable trading strategy, and with enough practice and consistency, you can greatly improve your chances of beating the odds in a bull or a bear market.
Again, We are in the process of creating a wealth of new resources and tools to help you take advantage of this historic time in the stock market.
At Bulls to Bears, our followers come to our blogs to learn the skills of trading and then they join our cutting edge advisory service to find the stock situations which they should be acting upon.
So, when placing your trades consider these top 25 Trading tips as a guideline to help you in you quest in becoming the best trader you can be:
Till next time... Happy Trading!
- Tip 1: Bulls, Bears Make Money, Pigs Get Slaughtered
It's essential for all traders to know when to take some off the table. - Tip 2: It's OK to Pay the Taxes
Stop fearing the tax man and start fearing the loss man because gains can be fleeting. - Tip 3: Don't Buy All at Once
To maximize your profits, stage your buys, work your orders and try to get the best price over time. - Tip 4: Buy Damaged Stocks, Not Damaged Companies
There are no refunds on Wall Street, so do your research and focus your trades on damaged stocks rather than companies. - Tip 5: Diversify to Control Risk
If you control the downside and diversify your holdings, the upside will take care of itself. - Tip 6: Do Your Stock Homework
Before you buy any stock, it's important to research all aspects of the company. - Tip 7: No One Made a Dime by Panicking
There will always be a better time to leave the table, so it is best to avoid the fleeing masses. - Tip 8: Buy Best-of-Breed Companies
Investing in the more expensive stock is invariably worth it because you get piece of mind. - Tip 9: Defend Some Stocks, Not All
When trading gets tough, pick your favorite stocks and defend only those. - Tip 10: Bad Buys Won't Become Takeovers
Bad companies never get bids, so it's the good fundamentals you need to focus on. - Tip 11: Don't Own Too Many Names
It can be constraining, but it's better to have a few positions you know well and like. - Tip 12: Cash Is for Winners
If you don't like the market or have anything compelling to buy, it's never wrong to go with cash. - Tip 13: No Woulda, Shoulda, Coulda's When Trading
This damaging emotion is destructive to the positive mindset needed to make investment decisions. - Tip 14: Expect, Don't Fear Corrections
It is not always clear when a correction will strike, so expect and be prepared for one at all times. - Tip 15: Don't Forget Bonds
It's important to watch more than stocks, and bonds are stocks' direct competition. - Tip 16: Never Subsidize Losers With Winners
Any trader stuck in this position would do well to sell sinking stocks and wait a day. - Tip 17: Check Hope at the Door
Hope is emotion, pure and simple, and trading is not a game of emotion. - Tip 18: Be Flexible
Recognize and be open to the unexpected shifts in the market because business, by nature, is dynamic, not static. - Tip 19: When the Chiefs Retreat, So Should You
High-level executives don't quit a company for personal reasons, so that is a sign something is wrong. - Tip 20: Giving Up on Value Is a Sin
If you don't have patience, think about letting someone who does run your money. - Tip 21: Be a TV Critic
Accept that what you hear on television is probably right, but no more than that. - Tip 22: Wait 30 Days After Pre-announcements
Pre-announcements signal ongoing weakness, wait 30 days to see if anything has gotten better before you pull the trigger to buy. - Tip 23: Beware of Wall Street Hype
Never underestimate the promotion machine because analysts get behind stocks and can keep them propelled in an up direction well beyond reason. - Tip 24: Explain Your Picks
Buying stocks is a solitary event, too solitary in fact, so always make sure you can articulate your reasoning behind your trade. - Tip 25: There's A Great Stock Trade Somewhere
It's OK if you have to work hard to find a good trade, just don't default to what's in bear mode because you are time-constrained or intellectually lazy.
Whether you are a seasoned trader or a newbie in trading, you can trade independently, successfully and maximize your wealth with the help of our timely and robust advice.
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Till next time... Happy Trading!
