A Basic Trading Plan in a Nutshell. — ASXnewbie.com
Weekly Ramblings of an Australian Stock Trader - incorporating ASXweekendtrader.com
Random header image... Refresh for more!

A Basic Trading Plan in a Nutshell.

For those of you who are interested here is my “trading plan”.  Here it is in a nutshell:-

1. Do your homework/research.

2. Know the amount you are investing in the stock. No more than 10% of your portfolio’s value.

3. Work out your profit margin. So you know how much you are going to make plus know your exit price. (The price you are selling at.)

4. Put your stop loss on so you will not lose more than 10% ($2,000 = $200 this includes brokerage).

5. Don’t get greedy, panic or fearful. (You can’t afford these emotions in trading.)

6.Have an up to date list of around 15 to 20 future prospects ready at all times.(If in doubt leave it out) and keep them up to date.

7. Dont become impatient; don’t go chasing share prices/ stocks. And make sure you are using “real time data” 20 minutes delayed price is for the birds.

Of course you can add in your own rules as you see fit. Happy trading.  :-)

0 comments

There are no comments yet...

Kick things off by filling out the form below.

Leave a Comment