beginners advice, page-4

RSTRAXX welcome.


Mostly I trade/invest in mid/micro cap and blue chip mining stocks. Even the pennies.

Have been doing this for a while now. The most important thing I have learned, earlier on the hard way unfortunately, is to protect profits.

Don't get too greedy when the stock runs, and give yourself a realistic profit target.

Always use "stop" losses, as this will protect your investment if it dives.

Keep emotion away from your decision making.

Longer term traders should look at fundamentals, who is running the company, do the people on the board have a background in the industry, cash position, and viability of their projects. I read at least the last 6-8 months of announcements before I invest. Have come across some dodgy mining companies that have a board of directors that are all accountants!

Short term/day-trading is a completely different beast. Sometimes fundamentals go out the window. Tight "stops" are needed. My charting abilities are limited to the basics, and I still get them wrong sometimes. But not for the faint hearted.

I do both longer term and day trade. I have learnt that there is no emotion in the market. Never fall in love with a particular stock.

Do as much research as possible, and take what is written in internet forums/chat-rooms with a grain of salt. Some 'rampers' have their own agendas, and after a while you will be able to spot them.

As you are just starting out, what I would recommend is to "paper trade" via the asx website. It will give you a feel of how the game is played, and you lose NO money. Once you get confident enough to enter the market, just remember that the market can be both very rewarding but also very cruel.

Buying something because someone on HC or other sites has said it will "go bonkers" without doing your own due diligence is just suicide.

After a while, it is easier to spot the more genuine posts.

Everyone has there own trading/investing strategies. Research is the key to any trade.

5% HC or other sites
95% DYOR

Regarding "your possible first three trades", no-one will give you advise to buy or sell a stock. If by chance someone does, would you really trust someone "hiding behind a keyboard"? And 2 of your 3 speccie stocks you mentioned have already had a 'run' this year.

Enough of me rambling on, just remember you are using your hard earned money, and always do your "own" research.

Best of luck, be careful and DYOR.