These stock trading tips were developed by the StockMarketFunding.com Stock Trading School over 25 year period to address the physiological and emotional behavior patterns, problems, and mind traps that individual traders fall into. SMF Pro Traders will identify their morning SMF Pro Trader Stock Picks for entry and exit points.
Stock Trading Tip #1 Never give in to the temptation to ride your losses which amount to saying to yourself: "It will come back." That type of thinking has ruined many traders. In other words, you must have the SMF PRO TRADER discipline to always cut your losses or keep them small. This is the main thing that will allow you to stay in the game long enough to become successful. New SMF PRO TRADERS TRADING UNDER OUR CAPITAL MANAGEMENT SERVICES will follow this rule with out doubt.
Stock Trading Tip #2 Break-even levels are deadly reference point on losers. Avoid the hoping or praying stage that a loser will come back to breakeven. Define your SMF CAPITAL RISK on the entry of a trade, and if that SMF risk level is reached, stop the trade and move on to another name. SMF Pro Traders have many set choices to choose from so therefore don’t get consumed by one trading opportunity. SMF Trading Staff have many stocks to choose from along with your trading partners in your live trading room are also watching trades as well.
Stock Trading Tip #3 Don't liquidate a winner to keep a loser. You hear experienced traders talk about winning trades which "finance" losing trades. This mentality is interesting, as it suggests that every trade you carry has a cost associated with it. As a result you want to get the best return on every piece of SMF trading capital you employ. This suggests that you should not only not carry losing positions for very long, but even breakeven positions possess an opportunity cost compared to other winning positions you could enter. Start liquidating not when you are clearly wrong, but when the market is not proving your position right. When a position is not working then get on the other side of the trade. Long not working then get proactive and short it when the chart patterns tell you to and maximize your SMF PRO TRADER SET UP.