Stock Trading As a Business

Whether you are a part time trader or hard bitten stock trading operator, it is important that you approach trading as a business.

The advantage in using this approach is that by being disciplined enough to follow a few proven rules, there is every likelihood that you will end up with more winning trades than losses.

These proven. time served rules, have delivered consistently good results for me time and time again and will do the same for you.

* Stop trading at the right time - have the discipline to stick to the strategy you agreed on prior to beginning the trade.

* If you're on a winning streak, stop when you originally intended to without turning the trade into a loss and if you're on a losing streak, don't change your strategy and stick to getting out when you planned.

* Simplicity is the word - focus on strategies with minimal indicators because complicated strategies with too many elements can become to complex.

* Keep your stops firmly in place - As a result, overall your winnings may be smaller but your losses will average about the same.

* Make a plan - Don't be one of those people who trade without much of an idea as regards why they are doing what they are doing.

* The risk factor - The will always be risks associated with trading but the main thing to remember is that you cannot be successful without taking risks.

These basic rules are tried and tested but more importantly, when consistently applied to the 'trading stocks as a business' model, they will improve your overall results significantly.

Source : ezinearticles