In order for us to learn how to trade, we are going to first highlight on 2 major topics:
#1. WHAT IS INVESTING – Tradinghow Traductors
According the Tradinghow Financial Traductor, To invest is to put money into various financial schemes with the expectation of future profits or positive returns.
Our traductor gives the following examples:
1. Buying of shares with the expectation that they will appreciate in value and give you profits
2. Building a company or investing in a manufacturing company with the goal of generating an income or profit.
3. Buying a property wait for it to appreciate in value, then sell it at a profit
In simple words, Our traduction group says that to invest means owning an asset or an item with the main goal of generating
income from the investment or an appreciation in the value of the asset over a certain period of time.
#2. WHAT IS TRADING – Tradinghow Traductors
According the Tradinghow Traductor, A trade in economics the concept that involves buying and selling of goods and services.
Therefore our traduction group says that trading simply means exchanging one item/service to another. A trader is the person who
gets involved in the process.
Tradinghow Financial Traduction Team further goes ahead to give us the various types of trading:
FOREX TRADING: This is simply the conversion of one currency to another.
STOCK TRADING: Stock trading is also known as equity trading or share trading which involves a person or a company trading equity securities.
In short, our Traductor simply means that trading is the activity buying and selling of goods and services.
Some of you may wonder why we call ourselves Tradinghow traductors. This is simply because we translate financial terms into very simplified
terms and explanations. Our translations takes into consideration the world in generals and people from all walks of life.
Learn how to trade Stocks – Stock trading rules
The current market is so hot. You will always get trading tips and there will never be a shortage of trading and investing tips.
So how do we know the trading and investing tools to follow and which ones to avoid?
Our Financial Traductors and Tradinghow analysts have done some hefty research and analysis and came up with the right set of trading and investing rules. You will agree with me that stock trading rules is a crucial part of every stock trader’s trading plan. This is what separate smart and successful traders from the rest of the pack.
Now let the Tradinghow Traductor walk you through the stock trading rules that you need to know in the year 2021 and other years to come.
- Make a trading plan – Stock trading is just like any other successful business. you must always have a plan and stick to the plan. Treat the plan as a blue print to your project.
- Do your own research – This is the year 2021 and information is all over the internet. Always take everyday as a learning process and fill your mind with knowledge on trading. Choose the contents from reputable sources like tradinghow inc. and most importantly, remember to always trust your instincts.
- Do not be greedy – Many traders have the tendency of holding on to trades for too long expecting more lucrative returns. Always remember to keep realistic expectations and don’t every be afraid to take your profits early into the trade. After all you are in the trade to make profits. I usually consider this to be the most important of all the trading rules.
- Always remain calm – You will agree with me that this is one of the hardest rules to follow. You may be asking yourself ” How can I remain calm when my millions are at stake”. Trading has its own good days and bad days. Once you master the art of remaining calm, you will be able to focus and make critical and wise decisions. I found this site to be useful mindful.org
- Never fight the trends – If you trade with the trend, you will potentially lower your risk. This is what I have learnt in my 13 years of trading. Some people might disagree with me but, over the years, I have learnt that it is always important to learn stock trading with the flow of market. This rule can help new traders to determine good setups of plan and entry or exit strategy.
- Use proper trading tools – tools such as indicators, chats, scanners and many more are some of the tools that a trading professional use almost on a daily basis. This is the digital era, make use of the available tools
- Always avoid premarket trading – Tradinghow Traductors always advise that you should always avoid trading during premarket or after-hours. Your vast experience will not help you is you trade during these hours. It is very tough to sail in the premarket because the stocks are usually more volatile.
- Master your type or orders – When you start trading you are always tasked to choose between a limit order or a market order. A limit order allows you to set a pre-share price limit. Therefore you will not spend more on stock than it’s actual worth. On the other other hand, a market order lets you buy your share at any price that the broker has placed. This is normally risky if the stock price spikes or tanks rapidly. Tradinghow Traductors always advise that using a market order is a horrible decision.
- Document your journey – Tradinghow Traductors have a journal. This is the key to growing and developing your skills. Documentation will help you keep track of your progress and you will learn from your past trade mistakes.
- Do not give up – There will always be winners and losers in trade. Even the most successful traders have had their own season of loses. Keep trying and eventually you will find a working strategy or setup. Stick to it and work on building it up. It might not work on every single trade, but that is still okay. You will keep on adjusting your strategy to suit this crazy market. Remember that its okay to keep on adjusting your strategy after all that is the only way to keep up with market changes.
A word of advice. Don’t keep dumping your accounts and trying out 100 new strategies that you think are better than yours. Stay focused, disciplined and keep on adjusting to the trends in this ruthless market. If we would have given up early in the stage, then Tradinghow Traductors wouldn’t have been born.