Learn Swing Trading.
Swing trading is a great way to profit fast, without having to be tied to your computer all day long. As a swing trader your goal would be to hold stocks from a few hours to a few weeks, depending on what sort of trading plan you have, and also the market conditions at the time, will also play a factor. While there are many different trading strategies, you will need to seek to capture the stocks sweet spot or the majority of the trend to profit. No one on the stock market, or even a mathematical genius can buy at the exact bottom and sell at the exact top. What astute investors do is try to capture the middle part of the move and profit from this. It also means you do not have to watch the ticker around the close. It’s a nice easy free flowing way to make huge profits as a part time trader.
Develop A Core Strategy.
Even a successful Olympian will need to have a specialized move or training practice, and the same goes for being a trader. Successful traders will always rely on a bread and butter strategy to maximize their profit potential each month. This could include a special mix of strategies of breakouts, pull backs, trend channels, and post earnings events. If you can master these, you can make off like a bandit.
Once you get to know how to use these, and look for them, things become automatic and your monthly profits start to increase. Which means you can invest more money and potentially earn more at the same time.
Have A Good Watch List.
Having a good watch list as a trader is something you should build on daily or monthly time frame. It is said in trading, when you build a solid foundation for what you watch � profits will come much more easily. Let’s say you have a list of 20 stocks you are watching each day, and you keep your eye closely on what is happening, you can focus down and notice rally’s or sharp declines at the start of the month. Once you have a clear set watchlist and take notes and study individual stocks, that would be much easier than just lumping $10,000 on a penny stock blindfolded and cross your fingers, hoping for the best. Normally the best traders know and understand individual stocks even down to how they trade at the start or end of the day.
Have Stop Losses Just In Case.
Every good trader knows that no matter how good you are, or how good you think you are as a trader. At some point you are going to get a trade wrong. It’s the nature of the beast for which you are going to have to accept and just roll with.
Accept that things can go pear shaped, and if that does happen you need to have a strategic plan in place so that you can keep your money or keep losses to a minimum. It’s said that what sets apart traders is the human psychology, meaning it’s always easy to admit you are wrong, but if you are wrong and losing significant amounts of money how long do you stay wrong before you get out of the trade. Normally the longer you stay the more you lose. So it’s always opportune to have stop losses in place, and always know where you want in, and out of a trade, before you execute the trade in the first place.
There are some very bad horror stories with many traders. Everyone has one, but it usually comes down to self-defeat and when a trade goes against you, not getting out thinking the trade will just come back after you are wrong, only to see the trade get even worse and losses end up to be horrific. Remember Self-preservation is the key with trading. If you are wrong, admit it, let the stop losses hit and move on to the next trade. Traders with this attitude do take losses, but over the long run always win and end up on top.