Monday, December 2, 2013

Lower risk stock trading

Before  a traders capital is at gone, you should learn to be  more likely to identify risks and properly evaluate the trades. Once you are in the trade, it is difficult to admit when you are wrong and all too often new traders will loosen or remove stops rather than acknowledge when they are wrong. By identifying the risk in the trade prior to entry, you are more likely to remain calm and allow your stop to do its job since you know the worst case scenario before you are in. Whether your position or thoughts on a stock is bullish, bearish, or neutral there usually a strategy that might make the stock a trade. You can go long or short or look at the options on the stock.  Most all the brokers will have different platforms to research the kind of trade you are looking to make.
Lower risk trading