Saturday, 16 February 2008

Learn To Trade: Your source for investment or investments, stock, stock market, and stocks info

The 5 Most Important Questions To Ask Yourself Before You Put On A Trade or Investment

1. What markets am I going to trade? (i.e. stocks, bonds, commodities, currencies, etc.)
2. When do I get in to that particular trade or investment? (i.e. signal to get in, trading system)
3. How much do I bet? (i.e. Position sizing, determining how much money to put in)
4. When do I get out with a loss? (i.e. having a stop-loss, risk management, unexpected events)
5. When do I get out with a win? (i.e having risk-reward determined, 3:1 or 4:1 ratio, not being too greedy)

If you don't have all these questions answered before you put on the trade or investment, you shouldn't do it. Get everything answered! So when the time comes to make decisions, you are sticking to your pre-laid plan. That makes for successful investing.

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