Trading for a living for many of you is likely to be completely different from any other previous career or job you may have had. For others, trading your own money or using an online system may be a completely new experience. Keep in mind that it takes time to learn a new field. Trading is certainly not an exception.
Even if you watch and study my stock instruction videos carefully, it will still take time to consistently apply these techniques with favorable results. Think of the first time you took a tennis, golf, or even piano lesson. Once you were taught the skills, it took practice and repetition to learn to apply them. The same goes for many of the approaches you will learn about trading from my videos.
Trading for a living is an extremely challenging endeavor. It constantly changes, yet in many ways stays the same. If you are successful at trading, then you can potentially make more money than you ever dreamed of making. However, to be a good trader, you have to be a good loser. A big part of trading is losing. Everyone makes winning trades. It's those who do not lose as often or as much who come out ahead.
When starting, limit the risks you take. Start with the following conservative strategy. Pick 10 to 15 stocks you would like to follow, which are between $0 and $5. Choose stocks the average person never heard of and make sure that there are at least three or four market makers on each side of the market. That will give you more of an edge. Once you are satisfied with the results you are getting, you may consider some of the more competitive or risky situations. However, do not take on more risk until you have profited from stock transactions that fit within this framework.
When a stock is in a trading range, astute traders and market makers are less likely to panic and pay up than they would be when a stock is in a strong trend. The longer the trading range, the more traders that are likely to recognize it and the more likely it may be to continue and potentially narrow. This is a result of more players trying to buy on the low end of the range and sell on the high end of the range. Traders should also beware that if more traders have recognized the range, then more traders are likely to need to cover when the stock ultimately breaks out of this range.
Many new traders are so anxious to get started that they frequently push the wrong keys or buy the wrong stocks. Take your time learning the system you use. If you do make a mistake, it is usually best to take a small loss and just continue. Do not let a mistake turn into a big loser. Whether you bought a stock by mistake or not, one helpful rule is to concentrate on where it's going next. Do not worry about where you bought it, unless you're limiting your losses. This is a very common mistake traders make.
