There are no shortcuts…..
Everyone wants to make stock trades with positive results, and make it fast. I was in that boat for the longest time as well when I started years ago. Realizing that trading requires just as much patience and planning as any other profession, will save you lots of precious time and capital. Other market participants are also there to outsmart you. So respect them.
Trading stocks can bring a lot of emotional roller coaster rides, and keep you on the edge till you give up. Markets act fast and there is no way one can predict the short-term movements. While driving to Detroit few years ago, I saw a semi-truck which had an interesting four words written on its back… “There are no shortcuts”.
This is so true. Unfortunately we don’t realize that soon enough and end up pushing ourselves to hit that jackpot. In doing so we burn ourselves and our brokerage account.
Trading is one profession or hobby that can benefit a lot if you stay disciplined and keep the long-term picture in mind. More number of trades do not necessarily and always turn into more profits. Fluctuations are part of the game. But it is how you manage and ultimately adjust those ups and downs that makes you a trader. Be flexible enough to move in quickly, but at the same time give your trade enough time to pan out. Looking at quotes all day long does not usually help the situation. So keep a healthy lifestyle, and do not stress out. Trust Yourself !!
Position Sizing
This valuable tool can help you sleep better at night. Based on your level of risk aversion, access to capital, and stock price — position sizing decides for you how many shares to buy or short-sell when entering a trade. It limits your risk exposure and contain any loss in case a stock price moves against you. Highly recommend that you utilize this tool in your every day trading, especially if you are a new trader. Simply input few numbers, and it will tell you how many shares you should execute a trade with, and what should be your target and stop-loss given how much risk you are willing to take.
E-mail at Info@Tradealike.com and I would be happy to share an excel-based position size calculator that I built for myself. Very simple and easy to use.
