general trading tips for the novice trader

A Few tips

1. Decided how much max your willing to lose with each trade before you enter (2% of total capital is a good start)

2. Always set a stop loss either mental or automated the moment after you enter your position which loses you a max of 2% only

3. Protect you capital at ALL costs

4. Do not buy into spikes or rallies as a novice unless you want to give money away (give it to charity instead) Spike is a stock that has rallied 20%+ in 1 or 2 days.

5. Research all stock before entering.. chances of you jagging a winner and having the mental wherewithal to exit at a profit is very slim.

6. Decide on a modest profit target before you enter and don't get greedy or run a % trailing stop I recommend 11% for Short term trades.. When 10% in Profit move your stop up to break even.

7. When the market falls so will almost every stock on the market .. so must keep your stops on. There will be little or no warning that the market is falling.

8. Did I mention always have a stop ... well Yes I'll mention it again ALWAYS HAVE A STOP and don't move it

9. You biggest enemy will be "you" and your ability to maintain a consistent mental approach day in day out... Its not a sprint its a marathon.

10. Trading is a journey learn from you mistakes...and the mistakes of others.

11. Keep a diary so you can document your mistakes, read and update them often

12. 90% of novice traders will simply pass their money to experienced traders sooner or later... Danger lies ahead tread carefully.

13. Avoid leverage as a novice ie CFD, Warrants

14. Never Say never... ie this stock can't go lower... It will

15. Don't buy downtrends unless they are turning conclusively back up.

16. I'd recommend Breakout trading as a safeish/safer method of trading for a beginner...than Chasing rallies.


Sound scary and dangerous ...well it is the market will take not prisoners its relentless and ruthless.


However saying all that if you are persistent and find some good mentors learn from your mistakes, Be ultra disciplined you will end up consistent winner...

Best of luck...