I would agree with much of the advice here being a fairly new trader. One thing I found with the paper trading was that the emotion is not connected as it is in a real trade hence you don't fall victim to fear when the price moves against you, or greed when it's with you.
The most valuable lessons I have learnt is that of timing you trade. Look for strong support lines in the trends and trade from these. It is a good idea to follow just a few stocks to get to know them and how they react to key levels etc.
Also take care when tempted to go long in a bear market.
Take only a passing heed of fundamentals as they often catch us
out. Even a massive profit hike with increased dividends can see a stock falling rapidly as most things are build into the price. If the announcement was not up to expectation the effect can be
dramatic.
Careful money management and exit strategy will ensure your losses are limited and gains taken when appropriate. Also don't beat yourself up re losses. look at them as operating costs all business have them. Don't worry about exiting a stock with profit only to see it tick higher the next day. Few can call it at the peak.
Good Luck
The most valuable lessons I have learnt is that of timing you trade. Look for strong support lines in the trends and trade from these. It is a good idea to follow just a few stocks to get to know them and how they react to key levels etc.
Also take care when tempted to go long in a bear market.
Take only a passing heed of fundamentals as they often catch us
out. Even a massive profit hike with increased dividends can see a stock falling rapidly as most things are build into the price. If the announcement was not up to expectation the effect can be
dramatic.
Careful money management and exit strategy will ensure your losses are limited and gains taken when appropriate. Also don't beat yourself up re losses. look at them as operating costs all business have them. Don't worry about exiting a stock with profit only to see it tick higher the next day. Few can call it at the peak.
Good Luck
