I reckon there are a whole lot of you who either dabble or would like to dabble in the stock market that would love to know a lot more of the do’s and don’t of good stock trading. I came across Wizetrade today, a blog that deals specifically with stock market and securities.One of the worst things a Trader can do is to go in without a plan and many people do this because they lack planning skills. Wizetrade among other things shows you how to create a trading plan and part of that plan should be to have set your “stop – loss” strategy. This is where you set how much you are willing to lose before you sell at a loss. I found this to be the hardest thing to do, but if you don’t do it you can tie up your money for years (shit you could even lose it if you are dealing in speculative stocks). By selling at a small loss you free money up for a more profitable trade.
This blog is full of useful information and so I recommend anyone interested in either entering the stock market or those who are just playing around in it to go and have a look. I found the post on the 10 Common Mistakes that New Traders Make of special interest.