Over the last few months, many people have heard of, got involved in, or expressed interest in the stock market. The GME debacle, or fiasco, however you look at it, saw hundreds of thousands of amateur traders make absolute fortunes on the stock market – it became frontpage news and drew the attention of millions of people from all around the world. Because of it, many people are now looking to get involved in stock trading. Stock trading, however, can be very difficult, and you cannot simply just jump in and expect to find a fortune.
In this article, we are going to bring you seven top market tips and tricks from the pros. We hope that these tips and tricks will aid you in becoming the best trader that you can possibly be and that you, like many others, will find a fortune.
Here are the top seven stock market tips and tricks from the professionals.
Buy High Sell Low
This is one that we have all heard before, isn’t it? It is one that, however, many of us have no idea about in reality, and other than the obvious, would have no idea how to actually put it into practice. The general idea is to buy stock when it is on its low days, its red days, and sell when it is on its green days, its high days. This is how day traders trade. Long-term traders, however, will buy stock when it is low, and they will hold it for as long as they can until the profit far surpasses the initial investment.
If you struggle to read metrics and graphs and do not know how to spot a bullish market, then you may want to consult a professional trader and ask them for help. Many amateur traders do not understand or grasp the concept of buy high sell low, and trade in reverse (buy high, sell low). We all make mistakes as beginners, but if you continuously make trading mistakes and do not learn, then you will lose out on a lot of money completely unnecessarily.
Hold the Ship
As we just went over, the trick, for many stocks, is to hold. If you are hemorrhaging money, however, then you should sell. You can set a stop loss, which is a function that automatically sells all of your stock the moment that it drops beneath a specific point – the best way to do this is to set a stop loss for around 10% of your initial investment – that way you will not lose that much money, but will lose enough to stop yourself from disaster.
With the GME stock, for example, it dropped massively, and thousands of traders were out of pocket. In the last few weeks, however, it sky rocketed up to nearly $450 a share. If the traders who had lost would have held, they would have doubled their initial investments and made profit even on their huge losses. The trick is to know when to hold the ship.
Sell, Sell, Sell
Executing sales can be difficult. You can set a sell function that will, in your absence, sell your stocks, much like a stop loss. Set a sell for however high that you want to sell for, but do not get greedy. In the GME fiasco, thousands lost fortunes because they did not know when to pull out and held the stock far too long. Sell your stock and do not allow yourself to lose out on a fortune, which you can, without a doubt, make if you are clever about your trades. Don’t get greedy.
As a trader, it is absolutely integral to your success that you find a high-quality platform with low commissions. This is a sentiment shared by the trading specialists from Joy Wallet in their exclusive Stash Invest review. The platform that you inevitably choose to trade with should be carefully chosen, for if it is not, you will not achieve ultimate success as a trader. You need to be able to use the platform easily, have access to low fees, and tutorials for beginners, which only the best platforms have.
Learning to read metrics is a very important part of trading. If you do not learn to read metrics, then you will find that your trading will never be successful, unfortunately. Metrics are a crucial part of trading and ultimately determine how well a stock will do. Metrics like pay-to-earnings ratio can be a great benefit and asset to have on your side. It is important that you do learn something about metrics if you intend on becoming a successful trader and want to take trading as far as you can. You can learn about metrics all over the internet.
The best piece of advice that we can offer on this page is for you to make sensible investments. Unfortunately, many traders, usually those with no experience, blindly get themselves into trading and lose all of their money on silly penny stocks that they assume will ‘go to the moon’ or ‘rocket’. Generally, these stocks are pump ‘n’ dumps and they will neither moon, nor rocket. Make sensible, long-term investments. Try not to blindly invest, for it is blind investors who usually make the most losses and inevitably leave trading with their tail between their legs.
One top tip from trading extraordinaires is learn about the stock you intend on trading. If you cannot explain what a stock does or what function it serves, then you do not want to invest in that company. That is blind trading at its worst. If you just blindly invest in stocks, you will inevitably cost yourself a lot of money. Try to explain your stock and learn about the company and what its service is. This is something all top traders do. Investing in things you know nothing about can, and usually does, prove incredibly dangerous.
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