Stock Trading Tips For Serious Online Traders

FinanceStocks, Bond & Forex

  • Author Alyse Addis
  • Published February 1, 2011
  • Word count 458

You've probably realized that trading online is not nearly as easy as you thought it was. You've probably lost a lot of trades and even lost a lot of money with bad trades. The truth is that learning to trade is a pretty steep learning curve - one that often throws off 90% of those why try. With persistence however, you will start to "get it" and learn the ropes. I thought I'd share 3 of my most valuable stock trading tips with you to help you make more winning trades faster.

Out of all the stock trading tips that I've been given over the ears, bone helped me on a more practical level than these. Use them and use them well.

  1. Volume

Always look at the volume of trading for any particular stock. Volume is an indication of how interested traders are in the stock. It's also an indication of the flow of money. If people are buying and selling a stock, then it means money is flowing and you can get a piece of the action. With no volume, the stock is dead and your investment will be stagnant. You need that movement to make money trading.

  1. Buying and Selling Stocks

Obviously the most important part of any trade since buying at a low price and selling at a high price is the basis of making money trading. The real catch is this: Always buy on weakness and sell on strength. When you buy on weakness, you are buying a bargain. You are buying an undervalued commodity. When the market sentiment returns and the perceived value returns you can sell it on strength and thus make a profit.

  1. Moving Averages

Moving averages is a great indication of the direction a stock is moving in. Looking at moving averages for long term investments is common practice since the longer the period, the more reliable the moving average. For short term trading it is equally valid and by looking at moving averages over different time frames you can clearly see the direction a stock is likely to move in. Moving average crossovers is still one of the best ways to see buy and sell opportunities.

These 3 stock trading tips are also interconnected. The all affect each other. If there's good volume, then you will also see a corresponding change in the moving averages. Volume will also indicate major selling or buying spurts for a particular stock which in turn will be reflected in the moving averages. Before you make your next trade, take some time to look at these 3 factors and always keep in mind that we trade according to the perceived value of a stock. Just these 3 factors can greatly increase your success with virtually any trade you make.

For more great stock trading tips, visit my website and learn more about internet stock trading from someone who's been there and done that.

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