Online Stock Trading Tips

There are countless of trading system a certain trader can follow or adapt. But only a handful of it can actually make money. Trading; after a thorough reflection of more than 4 years in practice I actually admit that there is NO SINGLE DIRECT FORMULA to winning a trade.

What is the truth is that trading is more of an art than science. Winning a trade is like having acquired an art of a world-class painter. Painting follows no scientific rules but adheres to some artistic standard. I made tremendous mistakes before of trying to define a winning formula that governs all trading activity- it did not work.

It is because there is no holy grail in trading. But I think you can increase chances of success only if you stick to the principles of market movements.One of the most important of these market movements which is a FACT are the support and resistance level of the prices.

If you decide based on the numbers then it will increase your chances of success, combine with the principles of money management in stock trading ; you will surely make a living out of trading. So what trading system actually works and makes money: (more…)

Paper trading is a simulation trading to assess your trading skills and strategy before you do the real thing. This does not involve any money at all. Others may be looking for free paper trading accounts: but I find this unnecessary. It is because you can solely paper trade on your own (even using a more common spreadsheet like Excel).

What you need?

First you need these requirements:

1.) An objective/clear trading strategy on when to enter a trade, how to manage the trade when it went profitable and how to exit a trade for both profitable and losing scenarios (stop loss for example). You must write this down and follow with a heart and discipline, failure to stick with your plan as you trade in paper means a complete disaster in real trading.

Note: You should not make excuses in paper trading, just like you cannot make excuses when you trade and lost in the real game. Of course, you can cheat easily with paper trading but you cannot cheat in actual. Results are results. Make paper trading as realistic as possible. (more…)