Best stock investments are done by traders and investors that are also masters in trading psychology. These traders and investors can pick best stocks and trade these investments online. They maintain very strong discipline that also handles their emotions.
Trading is about money. Every online stock trade provides an immediate result in profit or in loss. There is nothing in between. It is very hard for people to see these quick and direct investment results of their decisions.
To trade stocks online means to accept responsibility
Every trader and investor should understand that he is responsible for all trades he makes. That the investment results of any online market position are only the results of his actions. Nobody else should be blamed for a losing trade. And nobody else should be responsible for a profitable trade.
And there will be losing trades and investments together with profitable ones. There is nothing wrong about it. Profitable
stock trade systems run by the best world traders are sometimes doing only 30-40% profitable trades. Yet they are able to make money.
“A profitable trade should be forgotten quickly and a losing trade more rapidly” is a known idea by one famous day trader Linda Bradford Raschke that I found on the Internet.
Key stock trading rules for profitable online investments
Realize that losses are part of the game. You can’t take a loss personally. As I mentioned above, losses are a common part of this business. The business plan for your investments should accept it and have rules on how to handle them. Also losing trade that was done in accordance with your stock trading plan could be treated as one of the best stock investments.
Money management is a key.
As I have said before, you can have only 30% of trades profitable and still make money by trading stocks online. The definition of maximum risk for each position or investments can solve emotional stress that accompanies every online trade.
The trader or Investor must have confidence in his/her trading system and strategies.
It is important to test them before real trades to obtain this confidence. It is not good to risk real money before any strategy is well tested by paper trades.
Keep a journal and learn from your trades
It is absolutely essential to keep a journal of all trades. Note everything that should be noted about any single trade. And do a regular review of realized trades. Check if all trades have been done in accordance with your trading or investments plan. If not then find the mistakes and try to correct them. Mistakes must not be repeated.
Best stock market advice about market investments
Realize that nobody has control over the markets
The market can do whatever it wants. It is made up of a mix of millions of individuals who you have absolutely no control over. Any of your best setups that you use to trade stocks online will not work if something happens.
If some big fund starts to dump its big position. Or if there is some outside influence. Something can happen on the other side of the globe and market starts to react. And your position will be stopped out. Do not blame anybody, be calm. Such things happen from time to time and even the best stock investments could be affected.
Finally, if you want to learn more about stock trading and investing psychology and achieve best investments results , I recommend trying some books from Mark Douglas, like Trading in the Zone.
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