Even the best traders in the market have trading sessions that are less than optimal. Human nature dictates that we make mistakes, and trading the stock market is no exception. Subsequently, there is always room for improvement, whether you are a novice trader or a seasoned veteran.
- Stick to Your Guns – Don’t try to run from the market. The only way to boost trading profits is to stay in the game and keep trading. Running from the trades and the action will keep you out of the market, whether it is hot or cold. Sticking to your trading plan and enacting trading discipline are the keys to producing profits.
- Set Stop Losses and Take Profits – “Set and forget” trading is generally profitable. When you place each trade, remember to place your exit and stop loss, and then let the market be your guide. Have a preset limit of how much you’re willing to win and how much you can lose. Technical analysis will tell you the best price for selling (near resistance) and the best place for buying (near support). Support and resistance points are the best places to put limit orders. (more…)