What You Need to Know About Trading Stocks and ETFs

May 13, 2020

Trading stocks requires you learn how to trade stocks, learn about the markets, learn what drives stock prices, and learn how to decide which stocks to buy and sell.

Experienced stock traders always have a plan before entering a trade. This plan includes how many shares to buy or sell, how much risk they are willing to take or how much money they are willing to lose on a single trade.

Understanding the stock or ETF you are looking to trade is key. How is the company doing? When is the next earnings report; has there recently been good or bad news; is any news expected? Always do a Google search and learn as much as you can before hitting that buy or sell button.

Finally, once you are in a trade, don’t drive yourself crazy watching the price action every five minutes throughout the day. Don’t over trade your account, only risk a small portion of your account on any one trade and don’t have so many positions on that you feel anxious. Enter and exit trades based on evidence and not emotions. Losing trades are part of trading. If you learn from the losses, they will make you a better trader in the long run.

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