Wednesday, January 19, 2011

Online Trader Should Follow These Rules

There can be some very petty incidents which can turn Trades disastrous for trader even everything done by the trader was right in execution of the trade.

You can easily follow some basic practices which can get you out of an unwanted ugly situation created by an incident coming like a bolt from the blue.

I hope these useful tips will help you in making your future trades more secure.

1. One important thing to remember while trading is to have the name of your broker [relationship manager] and the dealer desk phone number along with your account number always close to you while trading. This will ensure that if there is a power outage or a problem with your computer like an OS crash or something hard to handle then you can still get out of a trade with the help of placing the order with your broker.

2. If you use a desktop computer then it becomes more important that you have an uninterrupted battery backup on your computer. The power outage will not then affect your trade considerably and you will also be able to save data and take action on time to secure your open position.

3. Try to keep two net connections with you so that if one goes down then also you are not affected and you can run up your terminal on the second internet backup connection.

4. Keep a mobile phone as a backup to your land line phone.

5. Keep a piece of paper and pencil with you so that you are able to jot down important points about your trade if you are in a learning phase.

6. Make sure to double check the filled information while placing the trade so that it can prevent you from placing a wrong trade unknowingly like you may see on your second check that you may have filled 3 contracts instead of 1 contract. This error can cost much.

7. Last but most important is to place a STOP LOSS the minute you have entered the trade. DO THIS ALWAYS. It will be like a cushion against a wrong trade.


Quote :

William J.O’Neil “ 90 % of the people in the stock market, professionals and amateurs alike, simply haven’t done enough homework ”

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