Trading Tips
- Do your homework (follow our newsletter and investment checklist) before deciding to invest.
- Plan your trade and trade your Plan.
- Look at the charts to help decide on entry points.
- Use limit orders to enter positions – or if you want in right away establish a small position and then join the bid.
- Don’t Buy/Sell all at once.
- Don’t chase a stock – try to buy the dips.
- Be prepared to lose sometimes. Set Stop Losses and exit a trade that is going badly.
- Don’t anchor on specific numbers for entry and exit points. Be flexible and adapt to what the market is doing.
- Don’t be afraid to take some off the table if you are in a winning position. Nobody ever went broke taking profits!
- Don’t put all your eggs in one basket.
- Look at the average daily volumes, both historic and recent, for the equity you are trading and take positions accordingly. You don’t want to have a larger position in the stock than the stock trades on a daily basis!
- Microcap stocks can be incredibly volatile. Be prepared for price to move up and down rapidly and try to use this volatility to your advantage.
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