Suggestions to new traders
from: SDRider
Trading can be as complicated as anything could be, but it could be a relatively simple process. The best approach for new traders is to have a mechanic and disciplined procedure.
- do your dd carefully and have a plan in mind before you buy something
- buy low, don't chase high flyers. Better lose opportunity than money.
- set mental stop loss 15-20% for small caps, 10%-15% for middle/large caps
- take profit with small lots on the way up at key resistance levels.
- unless there is major news or major change in the market, stick with your plan.