Australian (ASX) Stock Market Forum

You Have 5 Must Know Tips for Traders or Investors: They are? Why?

tech/a

No Ordinary Duck
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I'm interested in your best of the best.
Your absolute Must Go too's.
The things that you KNOW give you consistent profit.
 
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Not being afraid to pull the trigger when an opportunity arises.
 
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Value Collector

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1, spend less than you earn, and invest the difference.

2, Compound growth is your friend, use it.

3, think of shares/securities as parts of businesses/assets not blips on a computer screen.

4, choose assets that have natural inflation hedges while also producing income.

5, learn the difference between price and value.
 

greggles

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1. Always have a stop loss in place
2. Always have a stop loss in place
3. Always have a stop loss in place
4. Always have a stop loss in place
5. Always have a stop loss in place

All of my greatest mistakes have been from not having a stop loss in place and getting emotionally invested in a stock. I have ridden some stocks down into nothing and it didn't have to happen.

Always use a stop loss. If you get stopped out you can always re-enter again at a better time.
 

Value Collector

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1. Always have a stop loss in place
2. Always have a stop loss in place
3. Always have a stop loss in place
4. Always have a stop loss in place
5. Always have a stop loss in place

All of my greatest mistakes have been from not having a stop loss in place and getting emotionally invested in a stock. I have ridden some stocks down into nothing and it didn't have to happen.

Always use a stop loss. If you get stopped out you can always re-enter again at a better time.
In 24 years of investing, I have never used a stop loss.

(I am not saying they are bad, just that I don’t think they are hat important, especially if you are a long term investor rather than trader)
 

Knobby22

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Know why you are buying.
Don't be afraid to double up especially into a trend.
Take profits when toppy.
Read the company announcements.
When gathering information beware of bias.
If something is going down and you don't know why, sell.
(Sorry that is 6).
 
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In FX, know your exit target before you enter, and why price is moving there, this is why you enter where you do.
 
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Your number one objective is survival not getting rich. If you survive the profits will eventually come.
- If you are losing trader, stop digging and step aside and rethink approach
- If you a breakeven trader, don't give up as you a few tweeks away from big money
- Don't chase or force trades
- Exercise patience
- Have plan and a tested strategy and follow it with discipline, cap your losses but don't cap your profits
 

Zaxon

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  • The trend is your friend
  • Cut your losses, and let your profits grow
  • A stock is only worth what the market is willing to pay. It may never reach some valuation you personally believe in
  • Don't pull out your flowers to water your weeds
  • Don't run your stops too close, else you'll be stopped out by the stock's natural perturbation
 
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I don't expect to win more than 50%, I just make sure my average profit is greater than my average loss.
 

tech/a

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The following is what I have found to be true for ALL investing (in).

Trading
Business
Property
People

Opportunity

Learn how to identify opportunity
In trading that maybe (for you) Finding an undervalued Company
or an emerging company or one supported by news or a chart pattern

In business that maybe a niche market or an area of perceived demand
or maybe an expertise you can bring to your area,country,the world.

Property maybe an area where demand will increase or the worst house
in the best street or a distressed sale or a renovators delight or change in
zoning.

Learn what you need to do to take advantage of that opportunity.
That maybe capital or relevant experts on tap or software or a business
plan or test results or market research or P&L and Balance sheets and
of course RISK evaluation

Then DO IT

Walk across the room and ask her/him out!!

Opportunity Cost


Understand that sitting around waiting for something to happen is VERY
expensive. Your Money MUST be constantly working for you if its not then
something is wrong and you MUST change things. ( You may never see
him/her again!)

A business which isn't attracting customers or clients.
Or a Stock which isn't moving or worse falling while your invested
Or a Property which is costing you more to develop than the area will pay.

Don't fall for the HOPE or woulda shoulda coulda mantra.
Recognize failing opportunity. Particularly in bad or toxic relationships
or friendships!!

Test and Evaluate everything.

As much as you possibly can take control of your own destiny. Learn what you need to
do to evaluate your opportunity and produce a blue print or blue prints to follow
Have clearly defined targets and if not met find out why. Understand the Signs of

FAILURE and avoid it sooner than later. Investing purely on an idea and without proper
preparation is exactly what most failed investors do.
Don't give your money to others to invest in their ideas. Invest in YOU.
BECOME THE EXPERT control your risk.

Understand Nett and Gross Profit

Always take profit out even for re investment. Take out a wage if that's an aim
Provide for tax if your living week to week something is astray. Don't fall into the trap of
churning figures. Or bad relationships!! Don't waste life!

Finally UNDERSTAND RISK

Everything we do has a risk learn how to

Identify it
Quantify it
Avoid it where possible
Minimize it
Mitigate it.
DON'T BE AFRAID OF RISK
(Box above your weight!).


If you do everything that everyone else does then you'll just be one of millions.
Anyone can be a loser that's why there are millions of them.
Don't do the same thing day in and day out and expect a different result!
Change something!


Lifestyle
Philanthropy
Money
Financial freedom
Time freedom
Happiness
Security
Family
Valued friendships
are some of the rewards of being SUCCESSFULLY different!

Enjoy.
 
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nice wrap up that



("Walk across the room and ask her/him out!!" i miss bojangles :cool: )
 

Value Collector

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Your number one objective is survival not getting rich. If you survive the profits will eventually come.
Yeah, as In tennis, often all it takes to win is getting the ball over the net, and waiting for the other side to make an unforced error.
 

tech/a

No Ordinary Duck
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True

You might win the odd point

But the guy who is better prepared
Does things a lot differently, sees opportunity
And takes while Understanding
how he could lose everything
But puts in place enough research to avoid it.

Will not only win more often but will have
The longest career.
 
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