First of all, start your trading with high volume, high volatility, and a large market capitalization stock.
There are several reasons to validate this:
a) You will be able to see good price action.
b) There will be less manipulation in the market.
c) You will be able to preserve your capital easily by selling quickly
d) You will be able to access resources or news easily across the internet.
Here is my basic advice to avoid losing significant amounts of money in trading:
a) When making a price entry, always have support and resistance levels. If you are unsure about the levels, do not try to trade. Support is the price level at which buyers are heavily waiting or holding the stock. Resistance is the ceiling price that the stock is unlikely to surpass.
b) Trend: The trend is always your friend. Whenever your stock is in an uptrend, it is favorable to buy rather than sell. Never try to sell against the trend. I have made the mistake of going against the trend a few times and suffered losses as a result.
c) Chart patterns: These are specific formations that appear on price charts and can signal the direction of the market, such as head and shoulders, triangle patterns, and double tops and bottoms.
d) Technical indicators are supplementary, but you need to make sure that they are suitable for your trading style.
e) Lastly, the most important part is risk management. Always invest an amount of money that you can afford to lose. This involves managing risk by setting stop-loss orders, determining appropriate position sizes, and adhering to strict trading rules.
As you go through all these steps, it is essential to remember that technical analysis is just a tool in a trader's toolbox. In fact, fundamental analysis is always the underlying trend for the company's price action, which involves economic and financial factors.
PLEASE AND PLEASE DO NO OVERTRADE OR GO BEYOND OF YOUR TRADING PLAN!
@MillionaireTiger @TigerStars @TigerPM @TigerSG
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