Just to share some of my experience...........Like some of you guys, I used to chase stocks when it is moving up and when it starting coming down, I thought it is just very short term so I'll tried to average down. Yes, I did make big bucks but sometime lose even more. After learning from the hard way, I manage to find out more about share investment (truely investment and not gambling)...how to win in trading of share more often and lose less.
Firstly, you need to find out more about the company, its historical financial report and its future expansion/contracts and the industry that it is in as well as the performance of the management.....and we called this Fundamental Analysis (FA). Select stocks that has good FA.
Secondly, study the Technical Analysis (TA)....base on the indicators, understand the support and resistance level, break out etc. The indicators will be able to tell you when is a better time to enter and exit.
Thirdly, put your emotion aside ie. fear and greed (this is a killing factor most of the time).
Fourthly, for start, it is more advisable that you set up a simulated portfolio (without using actual $)..."trade" with the strategy for enter and exit that you have set.....modified a bit here and there after you start "trading". Practise make perfect. Once you feel comfortable with your strategy and the result, you may start trading with real $. For trading with real $, start with smaller amount as when dealing with real $, our human factors (fear and greed) will come in. Until you overcome our human factors, then you start to increase your investment amount.
This is what I will do if I were to start all over again....which is impossible. Therefore, I'm sharing it esp. to those who are new in trading and for those who are unfamiliar or wonder why you keep losing money. Just some sharing from many of my lessons learnt. Happy Trading!
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