Whether you’re a rookie, an experienced trader, or you’re simply thinking about ways to enhance your trading and become more consistent, this post is for you. A lot of trading services–whether paid or free–teach about charts, indicators, scanners, etc., but fail to really expatiate on how to actually profit consistently. This is unequivocally the norm and incumbent with a lot of chatrooms, which begs the question: Why do most subscribers/members still lose a lot even with all these tips?
The answer to this may be quite subjective. It could be based on the individual trader and his/her ability to really connect the dots, or it could simply be as a result of misdirection or asymmetric (insufficient) information, where the chatroom or mentor fails to give out this information–or perhaps because they actually don’t know, hence, can’t inform others. Connectedly, a lot of self-proclaimed gurus aren’t profiting from the market neither; they make most of their income from their monthly subscriptions, hence why they hold back on posting screenshots of realized gains (not the account balance) or even offer practical tips on how to consistently profit.
Follow the steps below and watch your trading transform:
- Protect your account at all costs
- Figure out your trading style: day-trading vs swing-trading
- Focus on more realistic gains, and steer clear of the home-run mentality
- Study, study, and study
Protecting your Account
Your no1 most important rule is to protect your account/capital at all costs, for without that, you will likely not profit from the market. It is oxymoronic to think that you can be a consistent, profitable trader from the market if you can’t even protect your current capital. Sometimes the best attack stems first from a better defense. When you see that a trade is stalling or volume is dissipating, you should leave at your entry (or slightly higher, even if it means a small gain). You may also decide to place a stop loss if you’re a swinger and seldom have the opportunity to watch the stock. Ideally, a 3% stop loss would suffice, and this works particularly well if you buy near support.
Placing a stop loss on a stock you chased will likely burn you. Entry is EVERYTHING!
What is your Trading Style?
If you work for the most part of the day (or during market hours), your main focus should be on swings. While it could be tempting to day trade, if you think it would be rather elusive to sit there and watch the stock so as not to miss your exit, then stay away. Conversely, if you have the time to trade uninterrupted, then day-trading would be best (Ustocktrade or Robinhood for beginners/small accounts).
Focus on Realistic Gains
This is a common mistake by most traders–to wait on a 15%-50% spike in a stock price before selling; this is, in fact, wrong, as you will miss out on little victories that can grow your account over a period of time. I deem 3%-6% gain more realistic, so you SHOULD start scaling out/selling at that point. If you think the stock price might go higher, then leave some free shares to ride just so you can capture the rest of the move, thus extricating your FOMO (fear of missing out). The stock market isn’t a get-rich-fast scheme, so trade smart and lock gains early.
Study, Study, and Study!
To be very successful in life, it comes with hard work. The stock market isn’t any different, so be sure to always study. We have a lot of educational materials in our room (ClickHere), so learn new things every week. While we can alert high potential stocks, it is ultimately up to you to take charge of your trading, finances, and financial freedom.