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Day Trading Online Rule
Day Trading Rule #1: Never think of a trade as an investment. When you
are day trading / online trading don't decide to hold onto the stock for an
investment. If your buying a trade and nothing is happening, the stock doesn't
move in a few days, you should get out. Since nothing about the company has
changed, don't hold onto the stock.
Day Trading Rule #2: Day trading means cutting your lossesIf your day
trade goes down you want to get out when it hits your stop - when the decline
still amounts to a short period of time or a small dollar amount. Cut your
losses quickly and get over them quickly, because the losses to come will be at
lower levels and at a bigger cost. Follow your trading plan.
Day Trading Rule #3: You already have a losing trade; it's ok to take
anotherA loss is a loss whether it's realized or unrealized. It's better to
acknowledge the loss and take another trade that makes sense.
Day Trading Rule #4: Don't expect to make money until you are out of the
trade. It's not a gain until you sell it and take the gain.
Day Trading Rule #5: Don't trade by using stock trading tips Don't
trade something because a friend told you or your overheard it on a train. Do
your homework and pick a trade based on your research and indicators.
Day Trading Rule #6: Until you are out of a trade, it cannot be considered a
profitable trade The amount you have to pay in taxes is nothing compared to
the amount you could lose if you don't lock in the gain on your trade.
Day Trading Rule #7: Minimize your lossesKeep tabs on potential problem
stocks because one bad apple can ruin a portfolio.
Day Trading Rule #8: Just because you might have missed the last trade,
don't hastily jump into the next tradeAcknowledge that you've missed out on
the opportunity and to move on to the next opportunity.
Day Trading Rule #9: Don't trade by the newspaper. They're under
pressure to get the story out.
Day Trading Rule #10: Don't jump off the bridge, just because your friends
did. You are likely to lose a lot more money than you'll make. If you go
long because a bunch of your friends did, or the news said so, does not mean you
will make money in your trade.
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