Hi All,
Like all trades:
A. Selection
1. Dig down your own research on what you wanna trade.
2. Make sure there is liquidity in that item..say Average Vol>=200k/d
3. Look at the capitalisation
4. Look at the business...location, customers, competition, entry barrier...
5. Look into the future of the business model...impact. Eg..will Solar ever work?..Impact on Oil, Impcat on Electricity,...Batteries; What if Music/Video Could be downloaded to my HDTV without having a PC....broadband is a norm now...
B..Strategy
1. Never loose money. Do Not SELL in PANIC!
2. Do not over trade. That is if you have $1000.00 in your account, make each trade say $200.00 for a total of 5 possible trades on same item.
3. Make first trade called trade1.
4. If item loss say 5% add another trade called trade2 with sell limit of trade1 open.
5. If trade2 loss say 5% add another tade called trade3 with sell limit of trade2
6. And so on.
C: Explaination
WIth this simple strategy, combining long term view you can profit from any liquid market item from >=-30%.
It also helps you to have a chance to enter a trade and to exit a trade often. The biggest problem of traders being how to exit a winning/losing trade
Like all trades:
A. Selection
1. Dig down your own research on what you wanna trade.
2. Make sure there is liquidity in that item..say Average Vol>=200k/d
3. Look at the capitalisation
4. Look at the business...location, customers, competition, entry barrier...
5. Look into the future of the business model...impact. Eg..will Solar ever work?..Impact on Oil, Impcat on Electricity,...Batteries; What if Music/Video Could be downloaded to my HDTV without having a PC....broadband is a norm now...
B..Strategy
1. Never loose money. Do Not SELL in PANIC!
2. Do not over trade. That is if you have $1000.00 in your account, make each trade say $200.00 for a total of 5 possible trades on same item.
3. Make first trade called trade1.
4. If item loss say 5% add another trade called trade2 with sell limit of trade1 open.
5. If trade2 loss say 5% add another tade called trade3 with sell limit of trade2
6. And so on.
C: Explaination
WIth this simple strategy, combining long term view you can profit from any liquid market item from >=-30%.
It also helps you to have a chance to enter a trade and to exit a trade often. The biggest problem of traders being how to exit a winning/losing trade
