The first tip is to have a stock “watch list” that is constantly on your radar. Whatever your criteria are for a successful stock trade, create a list in which you’re likely to find a good time to jump is. Watch this list like a hawk, and enter when the timing is just right.
Pay close attention to the market. Any successful investor knows you must be watching the market at all times. The market’s changes can drastically affect your own stocks and profits, so watch it like you’d watch your wallet in a shady neighborhood. Watch the trends and directions of the market carefully.
Here is where the difference in schools of thoughts comes in. A technical analyst should carefully analyze the company’s previous patterns, whereas a fundamental analyst should analyze the business’s foundations. But the big money and the biggest moves are made by marrying the two methods together.
Whatever your system for determining whether a stock is profitable is, make sure you follow the criteria to a T. For example, you may notice stock ABC just hit 85, the resistance floor where the company tends to go either sideways or up. You buy 100 shares, setting your stop loss at 83 ½ and your exit at 91. If this is what your system says to do, stick to it!
Whatever you system you follow, you should make decisions for yourself. Avoid taking the latest tips from friends and the media, instead educate yourself and find a school of thought you believe in.
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Source: www.articlesbase.com
