Apr
24
2015

Simple yet useful techniques for a trader

Stock Investing

© 2015 StocksAnalyser

Hold on, did I say trader???

Yes, but this does not mean F&O trader or a speculator, but what I mean is a trader performing short term trades on stocks for the investment term being couple of days to a year. I recently got a very simple yet interesting question from one of my readers regarding the strategy that should be followed in short term trades. And here is my attempt in helping him.

So now, if you are planning to do short investment in stocks then as a pre-requisite you should learn and know about technical/fundamental analysis. Some of the things to keep at your finger tips are:

1. Start learning more of technical/fundamental analysis. Follow any blog you can relate yourself better and read/discuss about it.

2. There are a lot of technical patterns that could be used, but stick to just 2 of them which you feel by experience are relevant in most of the cases.

3. Fundamental analysis is equally important.

4. While taking any trade decide beforehand stop-loss and target price and follow them religiously. This would save you from panic (in case you don’t have stop-loss) and prevent you from losing returns that you could have got (if you don’t set target price).

5. Along with short term trades I suggest to actively search for stocks where you can have a long term investment and maintain a long term portfolio as well. And have diversification done for such investments.

6. Remember not all trades that you do would earn profits, some would give you a bad experience as well, but don’t panic with bad experiences, after all those gave you something (learning). The main objective should be to get profit from the bucket of investment that you did on the whole.

Although they seem very simple yet incredibly effective.

Good luck !!! :)

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