These days it seems everyone is a trader, or at least claims to be. Most will tell you that they have the latest trading tips when it comes to stock market shares, while some supposed professionals will charge you to hear such tips at a seminar or webinar. The fact is there is no massive trading secret that can turn you from rags to riches, nor is success even guaranteed when you buy stock market shares. While success may not be guaranteed when you trade online, take on board the following tips and you can tilt the odds in your favour.
Tip 1 – Remain disciplined
A big reason as to why many fail when they try trading stock market shares comes from the fact that they lack discipline. First of all, you should never let emotion cloud your judgement when it comes to buying and selling stock market shares. Remaining disciplined and focused on the task at hand is the key foundation to finding stock market success.
Tip 2 – Skills pay the bills
Don’t be fooled, the very best stock market traders don’t get to such level by chance alone. To be successful in the stock market you need to embrace the fact that trading is a skill and a skill you must perfect at that. Take training courses to improve your skills whenever possible and practice on a demo account if you have one. When it comes to skill, practice will always make perfect.
Tip 3 – Fail to plan, plan to fail
When you trade stock market shares you need to be prepared for each and every trading day. A key tip is to have a plan for when you logon to your trading platform. Have notes at hand regarding the latest stock market news, what shares you want to buy, and what shares are best avoided. Next time you trade stock market shares start as you mean to go on with a plan in place.
Tip 4 – Don’t fear volatile markets
It is going to require true confidence in your trading ability, but you shouldn’t fear volatile markets. Everyone seems to have an issue with markets that are naturally “rocky”, but avoiding them entirely would be a foolish mistake. Try putting your money into emerging markets and seeing how things go. There might be increased risk by doing so, but to be successful you need to step out of your comfort zone from time to time.
Tip 5 – Be wary of jumping the gun
Even though you are completely right in thinking that you should react to news within the stock market, you should never jump the gun in doing so. News takes time to hit the price of stock market shares and for some company’s news may travel a lot slower than you would expect. Be patient and time your move right to find increased success.
Success never has and never will be a guarantee when you buy stock market shares; it is just the nature of the field. But by following the above tips you will give yourself more than a fighting chance at making your next trade a profitable one.
Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.
Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.