Here are the top 3 things to know when it comes to trading:
1. Day trading: Small moves are exploited, however remember the fixed costs of trading to overcome.
2. For longer term trades over days and weeks, you can trade technically or fundamentally. Some fundamental trades can make profits, but these take time usually, unless it is just before a major change in the stock price and you happen to get in just before this. Some companies offer stock tips and recommendations, but look at their track record. Are they brokers who encourage you to buy stocks because they have some sort of other vested interest or that they get personal bonuses and thus is not sound, or are they specialists in stock trading to make profits over their trades. Alternatively, if trading with fundamental analysis, then its a matter of letting profits run and having stop losses in and not risking too much per trade.
3. Money management.
In whatever style of trading you’re doing, you can never be 100% on a win loss ratio – the idea instead is to be in the game to make the big winners and to have some small losing trades along the way but to be ahead overall. Even if you’re taking stock trading tips from a company you still want to not risk too much per trade as you may need to be in a number of trades to catch the winner. Depending on the number of trades you want to take per month, you may need to dedicate a certain percentage of your cash float to make the trading sensible and profitable