Make sure that you diversify you investments. The trading business can look as if there is easy money to be made but this is far from the truth. These are very unreliable and if not traded with knowledge it can also wash away your capital in no time. Invest a part of your capital into ETF’s which can be traded like you would trade on any other stock. The advantage of trading ETF’s is that they are diversified and thus incase a particular sector makes a loss then that would be nullified by a gain in another sector.
Research is the key to be a successful trader and if you have no time to research then stop trading. Trading is like any other business and if you do not have the skill to run this business then there is no growth for you. In fact you also put your survivability to question then. Practice your skills and better it to be a successful trader. Read the financial reports, the newspaper and if you cannot do that then invest into the market by seeking the help of a professional.
Trade plan is something that is emphasized a lot on when you start trading in the security market. A trade plan is a step by step approach of when to enter or exit a trade. It also lets you manage your risks. The most important thing about having a trade plan is that it lets you control your emotions when trading. So have a plan and be sure that you stick to it.
Buying high in the market is something that most novice traders do. Always wait and have patience and look for a correction. It is only then that you should enter the market.
Trading is a long term investment but most new traders pull out their money as soon as they see the stock making a loss. The stock price will move in a trending and a corrective manner and you need to be patient and wait to see the stock reaches its target price.
Just reading the financial news and other trading articles online will not make you a successful trader. Visit the following site and set yourself a few months of time to practice your strategy and only when you see that your trade plan is making consistent profits for you that you should start investing. Start with a demo trading account and then switch to trading with a minimal amount of money. When you see success in both then you can trade with a bigger capital.