Ten Ways To Be Successful In The New Year!
The road to success is in the stock market is not an easy one and each of us must work very hard to overcome our emotions and think independently. At the same time, it's important to reflect on our past failures and use that knowledge to avoid the same mistakes in the future.
Here are some fundamental guidelines that will help you with that process:
1. Trading demands foresight, flexibility, patience, common sense and above all, sound judgement in a timely manner.
2. Trade with a plan, and know your limits before you open any position! Predetermine each potential entry and exit target.
3. Manage your losses successfully, and profits will soon follow!
4. Buy on weakness, and add to your position as the rebound above a trend-line (or moving average) confirms the upside potential.
5. Sell on strength, and close out winning positions at the first sign of hesitation. Protect your profits with trailing stops.
6. Distribute risk with portfolio diversity, and avoid financial uncertainty by using hedged positions.
7. Don't be influenced by outside forces, including friendly advice. Ignore the crowd and think for yourself!
8. When hope becomes a major part of your outlook, it's time for a break. Fall back, take inventory, define your motives and try again.
9. Don't over-trade! In addition, be careful not to increase your trading after a string of winners - savor your success!
10. Whenever you expect something to occur, remember that the market is famous for doing the unexpected.
Happy New Year!