TIPS: MAXIMIZING PROFITS OF Stocks Trading SYSTEMS
1. Define Simple Stocks Rules and Follow the Trend
The simpler the stocks system is the better. If the stocks system is too complicated, it will be very difficult to stick to the stocks rules. Complicated stocks systems are also very confusing. A simple stocks system makes it easy to follow the trading rules.
2. Eliminate Risk Quickly and Let Profits Run
Minimizing risk is far more important than making money. Our first objective in stocks is to make the trade less risky. We do this by entering only trade setups, setting stop losses, cutting losses quick and never average down, and letting the profitable trades run for a while, just long enough but not too long so as increase the profits. Profitable stock trades are only kept open as long as the stocks system shows the stocks trend is in place, these transactions should be closed immediately once your exit signal criteria is generated by the stocks system.
3. Choose the Right Stocks Trading instruments
Once you have your stocks system, you will want to start testing it on a demo stocks account. A stocks system will give different results for each stocks.
To maximize the profitability of your stocks system find the most active stocks market hours for a chosen stock and trade during that market session only.
4. Use Stock Money Management Rules
Always risk less than 2% per stocks trade transaction. With compounding, you will be surprised to see how quickly your stock trading account grows once you start to trade with a profitable stocks system.
5. Keep a Stocks Journal
Keeping a log of all your stock trades will help you to become a better and better and will help you follow the trading rules of your stocks system. A stocks journal will also keep track of your profitable stock trades and losses and you can analyze why a trade setup was profitable and why it was not.
6. Set take Profit Targets
Establish a daily, weekly or monthly profit targets when trading the stock market. Once you hit this target. This will stop you from over-trading and will also stop you giving back your profits the stock market. Keep your reward to risk ratio high, a 3:1 reward to risk ratio is best. This means opening stocks trade transactions only when you have the probability of making three times what you are risking.
Example of signals generated by our stock trading system
Example 1: Buy Stocks Signal and Sell Stocks Signal Generated By Stocks System
Buy signal is generated by the indicator based stocks system, then an exit signal is generated before another reverse sell signal is generated on this stocks chart
Example 2: Two buy signals generated by Stocks System
Two buy signals are generated during the upward trending market
Example 3: Exit Signal Generated by Stocks System
Examples of Stocks Trade Signals Generated by a Stocks System
Other Tips
Learn Stocks Trading Education
The first tip is to learn about the Stock Market (Learn Stocks Trading Lessons), those who don't learn the required stocks knowledge from the various stocks tutorials online will not improve their stocks results no matter how many tips they have read. By not learning stocks, these stocks traders will keep making the obvious mistakes made by stocks beginners without even realizing what they are doing, Stocks Trading is a wide topic and in order to make profits a stocks trader will have to learn stocks first.
Get a Stocks System
A stock trading system is a must for every stocks trader, a stocks system is used to determine what stocks decision to take. A stocks system gives a stocks trader an edge over others who don't have a stocks plan. A good stocks plan is one that is back-tested and proven to produce profitable stock trades. After coming up with your stocks system you should back-test it on a Demo Account.
Learn Stocks Money Management
Learn about The Various Stock Money Management Lessons, don't attempt to trade the online stocks market if you do not have stocks money management guidelines. The 2 stocks management lesson that you must learn are:
What is Stocks Money Management
Stock Money Management Methods
Learn about Stock Leverage and Margin
If you don't know what is stocks leverage and how it works and how it can affect your stocks margin, then you will not make any money in the stocks market and you will lose your money in the stocks market.
Have a Written Stocks Plan
A stocks plan will take into account all the above stocks tips and summarize them within one document that you can use to trade the online stocks market.
In General
The first goal should be taking your time to really determine what your stocks goals are and how much money you wish to make. Once this is determined then the following three suggestions will help you on your way to start Stocks. It is essential to keep all the three goals in mind when executing all of your stocks trade transactions but at the same time this is not a black and white guide to stocks success.
The first thing is to remember that you really need to work with short term stock trades until you become profitable and know how to properly monitor these stocks trade transactions. You should trade stocks short term because this way you can monitor your stocks positions and quickly close any stocks position whose trading signal setup reverses. In order to truly benefit from the stocks system you have to be willing to take up the effort to watch the stocks market to see exactly how long you can keep your money invested in the online stock market. Making short-term stocks investments will help you to monitor your stock trades and control all the risks, do not leave stocks orders open when you are away from your computer or when you are going to sleep, close all stocks trade transactions and only open stocks orders when you can monitor them.
Although it is very important to increase the amount of stock trades that you are investing each time that you trade - some stocks guidelines should to be followed. The general rule of stocks tends to be never to trade more than two percent of your total stocks account equity. This of course makes sense when you have a lot of money in your stocks account but what if you only have a couple of hundreds. Two percent of $10,000 equals out to be $200. Even though it is safer to follow this rule it really does not make a lot of economic sense with smaller stocks accounts. If you are investing on Stocks Trading this is when stocks leverage kicks in to effect and makes all of the difference. In General the more stocks capital you have to invest the better in terms of stocks money management.
The final suggestion is taking a bit of time to make sure that you get all of your stocks details correct before opening any one trade transaction, this will be the best method. Keep it simple makes just as much sense in stock trading market than anywhere else. Although this may require more time and effort to build up your stocks profits it will save you money in the long term.
Trying to keep your thinking as clear as possible will make your stocks journey easier but knowing when to break from the norm is also important. Moving towards the right path will make success that much more easier to obtain and by learning all of the steps and logic you will be able to continue making profits. Stocks Trading is not hard to learn but a lot of traders lose money quickly because of not taking the proper steps in preparation and learning.
