| The first and most important thing a trader must | | | | Success will be in your timing. |
| have is a "TRADING PLAN" | | | | If the market is going downwards a little patience |
| This is a "Written PLAN" which you can refer to from | | | | could mean a better entry price, which will reflect on |
| time to time. The reason for this is that it will keep | | | | your profits. |
| you on track and on the right path to becoming a | | | | As I have quoted before don't try to pick the exact |
| "Successful Share Trader. It should comprise of | | | | bottom or the top. Waiting to long might mean the |
| several steps which will become a constant guide to | | | | difference between a small profit and a larger more |
| each trade that you make. | | | | desirable one. The best advice is to get the "BEST" |
| 1.OBJECTIVE. Of course the main idea is to make a | | | | price possible at the time you decide to trade. |
| Profit. | | | | 5. EXIT. Not enough attention is paid to this area. |
| This is regardless of whether you are a "Long Term | | | | Timing is important, but a good "TIP" is "Have a "PRE |
| or Short Term Trader." Surprisingly enough quite a | | | | SET" exit figure already prepared. |
| few Traders don't make a profit. | | | | This has the advantage of you knowing already how |
| This usually is brought about by NOT planning in the | | | | much Profit you are going to make |
| first instance. | | | | [I have a "FREE SOFTWARE PROGRAM"AVAILABLE |
| They are actually trading "BLINDFOLDED." Not a very | | | | called "STOCKMONKEY" This will calculate your profits |
| desirable state to be in. But funny enough Traders | | | | for you in advance]. |
| are doing it all the time. | | | | Now DON'T BE GREEDY!!! This is a "TRAP" that many |
| 2. RISK. There are several types of risk to be alert | | | | traders fall into very regularly. More than I care to |
| for. | | | | mention, Small profits taken on a regular basis build |
| Firstly there is "Overall Market Risk." What is the | | | | very quickly into quite large amounts. |
| current "MOOD" of the Market "RIGHT NOW?" | | | | 6. STOPLOSS. This can mean the difference |
| Is it a "BEAR or BULL" Market? | | | | between "SUCCESS OR FAILURE" |
| Now depending on what type of Market it is, this | | | | A stop loss is a price that is set either ABOVE or |
| should/could influence you on whether or not to | | | | BELOW your share price. |
| enter the Market now or later. | | | | This has the effect of stopping a substantial loss or a |
| If everything is heading downwards, a little delay | | | | "BIG" one. A good guide is to have no more than 2% |
| might mean that you purchased that stock a little | | | | of you total portfolio at risk. You can decide what% |
| cheaper. | | | | you are comfortable with. |
| A bit of advice here, "NEVER TRY TO PICK THE | | | | A "TRAILING STOPLOSS' is what you place just |
| VERY BOTTOM OR THE VERY TOP OF THE | | | | behind your rising share price, this effectively "LOCKS |
| MARKET." If you happen to it is luck and nothing else. | | | | IN" those Profits so near and dear to you and me. |
| Even the so called "EXPERTS" cannot predict the top | | | | 7. PAPER TRADING. This is a wonderful idea to |
| or bottom. As much as they would have us believe | | | | practise and To "LEARN" and to "FINE TUNE" you're |
| they can. | | | | trading skills without endangering your hard earned |
| Another "RISK" is speculative Risk. This can be found | | | | cash. Plus it is "FREE" which is another advantage. [I |
| particularly in the Mining or Oil sector. Sure the stock | | | | have recommended 2 sites whereby you can try for |
| price can go skywards, BUT it can go the other way | | | | yourself] Who knows you might even pick up a prize |
| just as quick if not quicker. Only put a small | | | | or two, depending on your trading skill. |
| proportion of your capital in this area. Unless of | | | | In finishing, more "EXPERT KNOWLEDGE" can be |
| course you are willing to accept the Risk involved. | | | | found in "Daryl Guppy's" various books. Ones that I |
| ONLY YOU can decide what level of Risk you are | | | | have read from "cover to cover" and reside |
| comfortable with.[SEE STOP LOSSES TO HELP YOU | | | | permanently on my bookshelf are "SHARE TRADING'' |
| MINIMISE RISK] | | | | and "TRADING TACTICS" and a few others. |
| 3. ENTRY. This where you have decided at what | | | | Altogether he has published at least 8 worthwhile |
| price you are going to pay for your share. | | | | books, all of which come highly recommended. |
| As to when we will cover that in "TIMING." | | | | Unfortunately, [I get no Commission] this is a "FREE |
| What ever you do, "DO NOT" leave an order in | | | | PLUG" for Daryl Guppy. |
| overnight particularly if the stock is VOLATILE that is | | | | This is one way I can "PAY' him back for all the |
| to say that the stock is going up and down like a | | | | "KNOWLEDGE" that has improved MY trading no end, |
| yoyo. | | | | and continues to do so, on a DAILY basis. |
| You could pay more than you bargained for. | | | | Remember if you fail to plan, you are planning to fail. |
| If you must leave in overnight put a "LIMIT' to what | | | | I sincerely hope that someone has gained some |
| price you want to pay. Not a "AT MARKET ORDER". | | | | knowledge from this article and it improves in some |
| At least you won't get any nasty surprises that way. | | | | way "THEIR TRADING PROFITS". |
| 4. TIMING. A very important part of your trading | | | | |