What is “good stock advice”?
Does this question seem simple to you? Of course, that’s what makes you a lot of money, right? But does everyone make a lot of money with a good stock tip? Answer: “Absolutely NOT!” In fact, I know people who have actually lost money on a good stock tip! How can this happen? This can happen because a stock tip is only as good as your ability to use it. What do I mean? You must have a plan! It is important that you have a personal trading strategy that you can plug into the stock tip. It doesn’t matter if you’re dealing in penny stocks or blue chips. You must have a plan. Of course, your stock trading plan will be different for different types of stocks, but the bottom line is to do your own research, learn, and develop your own personal stock trading plan.
Here are 10 important points to think about when developing a plan.
1) What site will you use to trade?
2) When does the trading day start?
3) When does the trading day end?
4) What time do you get up to get ready to trade?
5) How do you know when to buy?
6) How do you know when to sell?
7) What strategy will you use to pick stocks?
8) What general stock trading strategy will you follow? (Penny stocks are different from Blue Chip stocks)
9) Who do you trust with advice?
10) Who has the best stock tips?
I could add fifty more items to this list, but this list is a good start. You don’t want to just sign up for stock trading tips and think you’re going to make a lot of money. You must have a plan in place. Making money in the stock market can be risky even for the most experienced stock traders. Go ahead and sign up for stock advice from a reputable source with a good track record, but also develop a plan. Learn, learn, learn and learn from those who have already achieved success.
After developing the plan, test it. Open a paper account with a reputable stock trading website. You can do almost anything with a paper account that you can do with a regular account. The difference is that you use play money instead of your real money. This will allow you to make your mistakes without losing money. You will be able to see how the market is performing in real time. You will also be able to see if your plan is good or if you need to make some changes.