Use smart Money Management.
The biggest reason traders quit trading is from incurring huge losses due to poor money management. Use stops, they are there to help you.
There are several different stop loss strategies and they can all be quite effective. Take some time, do your research and see what type fits your trading style best.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Let your profits run.
Letting your profits run is tough mentally and often leads to traders closing out trades too early. It feels risky, but once you understand that trying to protect every penny of your profit prevents you from making a bigger profit, you will be on the road to success.
Don't sell on fear and impatience. Remember your plan.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Don't try to buy the bottom or sell the top. It's incredibly hard to time the market.
How many times have you sold at what you thought was the top only to see the market head higher? And conversely, bought at what you thought was the bottom only to see the market erode further? Instead, focus on hitting that middle 80% of the trade.
It's OK to give up a little bit at the beginning and end of the trade to make a profit.
After all, a profit is a profit.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Think percentages vs. number of shares.
As you build your portfolio of stocks, concentrate on the percentage of your overall portfolio you want to invest and don't focus on the number of shares.
For example, one of the biggest mistakes novice investors make is buying 50, 75 or 100 shares of a stock. Instead, take your overall portfolio value and divide it evenly into percentages and then purchase your investments according to this plan.
Remember tip #5? It's easier to diversify using percentages.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Diversify Your Portfolio: Diversification is key to your long-term success.
I'm sure you've heard the expression, "Don't put all of your eggs in one basket" (one of those market cliches). It's great advice, the last thing you want to do is lock all of your capital into one market or sector. This will provide you and your portfolio protection from a catastrophic event in a single sector.
Do you have a diversified portfolio? Not sure? You can use the following list of markets as a starting point to check your portfolio. Are you invested in stocks, bonds, mutual funds, ETFs and private equity assets?
The end of the year is a great time to sit back, look at your investments and make sure that you are diversified and protected.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
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