With any rookie trader, there is always confusion. When I started I was thoroughly confused. I want to give you my top five tips for diminishing your confusion when you get started.
Over time it will become less and less confusing because you will gain knowledge and proficiency.
First up…
As you probably heard me mention before I want to reiterate it here, when you are paper trading or using a demo account, and when you start trading live, buy small lots, say 100 to 300 shares per trade.
That way if you are wrong you won’t swallow that big of a loss. You might break even or have a slight gain, remember you are needing to pay commissions so when you start this way, be sure your broker is charging you commissions on a per-share basis.
When you are trading with 1,000, 2000, or more shares at a time, then you want to be paying commissions on a per-trade basis.
Complete one trade before you enter another. This is how I like to trade, keeping up with one stock in a fast-moving market is difficult enough. If you feel like you’re missing out on other opportunities, don’t worry, more will come along, and you will still have your money to trade with.
Again I’m going to say it one more time…Paper trade until you feel comfortable placing real trades, maybe it’s a month, or two, or six months. Take your time. The market will still be there when you are ready. I never set a suggested timetable, everyone is different.
Review these articles constantly to stay familiar with the rules I’ve discussed, long before you place your first trade.
Learn one trading strategy at a time. I use mainly one, and occasionally one other trading strategy. You don’t need to go out on day one and start trying to demo trade every single one.
Practice scanning and researching stocks based on the criteria for one pattern or strategy at a time. Get proficient before adding in another strategy.
If you are struggling, reach out and share what your challenges are and I’ll do all I can to help you get back on track.
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