Katie Schaeffer of Schaeffer’s Investment Research discusses the finer points of stock trading. Included is information on how to perform a good trade deal and also how to avoid making dire trading mistakes.
Knowledge is Everything
First and foremost, you need to have at least some understanding of what you are doing. Even if you elect to have a broker do all the procedures, you still need to know what you are talking about. Only then can you determine if the broker is effective.
It also requires continuous learning about which stocks are worth the investment and which you should steer clear of. One way you can do that is to use Schaeffer’s Investment Research. They will help you stay informed of everything pertinent to stock trading.
Minimizing Your Risk
There is always going to be a certain amount of risk involved when you trade stocks. This is unavoidable. What you can do is establish a comfort level of risk. In other words, set a financial limit for yourself as to how much you are able to risk.
Another thing you can do is stay clear of stocks you know are going to be high risk, at least in the early days of your trading career. On the other hand, if you are able to risk money on the better stocks, they can offer you more of a return on your investment. These are the kinds of things you will learn from Schaeffer’s Investment Research.
Remember Stock Trading is a Business
It must never be treated as a hobby but rather a business that takes a full commitment and plenty of time. You also need to realize there will never be a regular paycheck coming in. This will be your own business complete with expenses, losses, taxes, stressful times, and yes — risk. If you insist on treating trading like a hobby or even a job, you are not likely to be successful. Thus says Schaeffer’s Investment Research leader, Katie Schaeffer.
It is Strongly Advised to Use a Stop Loss
Not having this is a bad idea that can only lead to trouble. A stop loss is either a dollar amount or a percentage limit on the amount of risk the trader allots to losing. You set this limit prior to each trade. The purpose of a stop loss is to minimize the monetary damage if a stock tanks in the market. Schaeffer’s Investment Research will assist you in learning all about this and other fine points of stock trading.