Top 8 stock trading tips ~ forex trading robot free software download
My experience of stock trading began in 2003. I read some small book on the topic and got fascinated by the opportunities that were there for me in trading stocks. I started trading on my native (Lithuanian) stock exchange by buying and selling stocks that seemed to be cheap. Unfortunately, they got even cheaper and having reached the ‘then’ bottom stagnated for a long time. I understood that something was wrong with my approach as I saw other stocks going higher and higher.
One day a friend of mine introduced me to his brother who had been investing in the same market for a few years. And he did have tremendous results. I looked at his portfolio and saw around 5 stocks all of which had risen more than 100 hundred percent from the time he had bought them. I was surprised to see that as 3 of the stocks were agricultural companies. For me, it seemed not a very intelligent decision to invest in those.
When I asked him about his choice, he took out some three pages full of pros (his why’s) for investing in the companies. This shocked me even more. I was very naïve at the time. I believed I could just look at the prices of stocks, read a little about them and pick up the one stock that will make me a lot of money. I was wrong and results confirmed that. Understanding the market and fundamentals was necessary for profitable investing. This was confirmed again when I started trading Forex and lost my initial balance of 500 bucks in a few months. Yea, it takes some time and painful experience for dummies to become wise.
Understanding of investing principles as well as fundamentals of a given market is a must for one to become a successful investor in any market. You will soon learn too, whether it is day trading or long term trading the statistics remains the same: 99 percent of those who trade finally fail. Why? There are a lot of reasons for that, but most fail to look at investing as a business and this light attitude causes them to fail.
In the article I am intending to present some of the most general stock trading tips that would help one understand what one should and should not do when one starts investing. This is the first article of the series that I am going to publish once a week. Hope the posts will be useful both for newbies and for more experienced ones. So, let me start.
