Friday, January 10, 2014

How to chose the right entry point

 Stock traders need to have a trading plan in place to decide when to enter or buy a stock. Having the right entry point will make a trader more money and have less risk on their trades. Smart investors always have a well designed buying strategy. They have back tested the trading plan and know when to take good trades from chart analysis and research. This is most important when determining the entry point when buying a stock.
Stock and Forex Entry Points  Traders need to look at the trend to make sure when they make a buy that they are not trading against a strong trend. make sure to look at how long the trend has been in place. You need to look at the profit potential before you make the trade. Ask yourself is the amount of profit worth the risk. You should always assets the amount of risk before worrying about the profit. Of course the larger number of stock shares purchased will get you to a smaller profit faster with less risk.