109 Views

5 Simple Stock Trading Tips Every Trader Should Know


Trading stocks is one of the most exciting ways to make money because it allows you to make money from the success (or failure) of publicly traded companies. Nonetheless, you’ll be amazed by the volume of sad tales you’ll hear from people who have attempted trading stocks only to lose a substantial part or all of their trading funds.

The reason many people lose money when trading stocks is that they often base their trading decision in whims, feelings, and on what others are doing. However, I posit that trading stocks could be highly profitable, interesting and educative if you approach it with the right mindset. This piece seeks to explore 5 simple stock trading tips everybody should know.

Diversify, Diversify and Diversify Some More

Diversification when trading stocks means that you fill your trading portfolio with different stocks from different sectors of the economy. For instance, you’ll buy a number of stocks from technology, e-commerce, oil & gas, biotech, and retail in order to ensure that tailwinds in one sector of the economy does not cause you to record severe losses.

An important point to know when trading stocks is that diversification ensures that you are alive to play another day even if you make the occasional wrong trading decision. Nonetheless, you might rebalance your portfolio regularly by moving more money into higher performing sectors in order to record greater ROI.

Manage Your Emotions or You’ll Lose Money

Managing your emotions is probably the single most important skill you’ll need to master if you want to trade stocks profitably. Many traders will tell you that know the right course of action (to buy or sell) on a particular trading decision but somehow come short of doing the needful until it was too late.

Hence, they’ll fearfully cut their winners short by selling once they record some gains. That fear will incapacitate them from cutting short a losing trade in the hopes that the stock will experience a turnaround until stock losses all of its value. However, you should be able to approach your trades with the detached objectivity by not allowing your emotions to get in the way of your trading decisions.

Invest in Your Education: Don’t Buy Stocks Based on Tips

If you want to succeed in trading stocks, you should be ready to invest in your education and learn all you can about different stock trading strategies. Many people erroneously assume that the simple concept of buying low and selling high could be successful applied when trading stocks.

ALSO READ  See The Future Old Age Photos Of Top 2 Of Your Favourite Nigerian Celebrities!!

However, the fact remains that you can never really know when a stock is trading at a low or high price unless you have invested in a stock education. In addition, you should not buy or sell stocks based on tips from the “Pros” “Gurus” and “Experts” because you’ll mostly be speculating and you’ll never be able to develop a profitable trading strategy if you are constantly flipping stocks based on whims.

Find the Best Broker that Fits Your Trading Style

Another important key that will assist you in your stock trading activities is to find a broker whose policies fit your trading style. Brokers (online and offline) will normally charge you a transaction fee for your buy/sell trades. However, if you tend to make a large number of trades within a relatively short period, it might be in your best interests to seek out a broker that charges a relatively low transaction cost.

You need to understand that the transaction costs that you pay will be deducted from your trading funds or from the profits you make from a trade; hence, it is essential that you keep transaction costs below reasonable limits in order to obtain better margins from your trades.

You Can Profit in Both Bull and Bear Markets

When people trade stocks, they are usually concerned about how to make profits when the price of a stock is going up. However, an often-overlooked fact is that you can also make money when the price of a stock is going down.

In fact, most of the times when you trade stocks, you’ll make your profit when you buy the stock and not when you sell the stock. Someone that bought a stock when it was trading for N5 per share will make more money than someone who bought the same stock for N10 per share if the stock price should rise to N15 per share.

Hence, instead of running away from stocks that are recording losses in their share prices, you may want to conduct due diligence that would uncover unique opportunities to purchase the stock at a discount.

Source: nigerianbulletin

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

Latest Posts

How 24-Year-Old Student Bagged First Class Degree At Bayero University Kano
Best of Nigeria
10 views
Best of Nigeria
10 views

How 24-Year-Old Student Bagged First Class Degree At Bayero University Kano

PH - January 20, 2018

Despite the “many hiccups” he faced along the way, Omeiza Aliyu bagged a first class bachelor of arts degree in mass communications at the Bayero University Kano…

Wizkid’s First Son, Boluwatife Balogun Swags Up In News Photos
Entertainment
86 views
Entertainment
86 views

Wizkid’s First Son, Boluwatife Balogun Swags Up In News Photos

MT - January 19, 2018

When your father is Wizkid Ayo Balogun, then swag is expected! Shola Ogudu, Wizkid's first baby mama shared these lovely new photos of their son, Boluwatife. 

“Doctor Saves Life In Theatre, You Take Gifts To Pastors” – Daddy Freeze, Crazeclown
Entertainment
84 views
Entertainment
84 views

“Doctor Saves Life In Theatre, You Take Gifts To Pastors” – Daddy Freeze, Crazeclown

MT - January 19, 2018

Is It Right? Doctors Spent Hours To Save Your Life In Theatre, You Take Your Gifts To Pastors - Freeze Daddy Freeze don start again today oo,…

Actress Rukky Sanda Steps Out In Ripped Jeans And People Are Talking About It (Photos)
Entertainment
55 views
Entertainment
55 views

Actress Rukky Sanda Steps Out In Ripped Jeans And People Are Talking About It (Photos)

MT - January 19, 2018

The actress and single 33yr old has been off from the movie screen lately, but she seems to be doing just fine judging by her photos, It…

7 Foods That Will Boost Your Digestive Health
Food and Health
52 views
Food and Health
52 views

7 Foods That Will Boost Your Digestive Health

MT - January 19, 2018

Your digestive system affects the well-being of every cell in your bodies. A healthy digestion will contribute to boosted energy levels, beautiful skin and rejuvenating sleep. So,…

Seyi Shay Shares Her Early Morning Photos Without Makeup (Photos)
Entertainment
73 views
Entertainment
73 views

Seyi Shay Shares Her Early Morning Photos Without Makeup (Photos)

MT - January 19, 2018

Nigerian female artiste stage named seyi shay shares her make-up free picture. She is looking cool anyway. See photos below

House Of Rep Member, Aishatu Dukku Says Herdsmen Values Lives Of His Cattle More Than Their Life
Politics
61 views
Politics
61 views

House Of Rep Member, Aishatu Dukku Says Herdsmen Values Lives Of His Cattle More Than Their Life

MT - January 19, 2018

A video making the rounds on the internet has shown a member of the House of Representatives claiming the Fulani herdsmen values his cattle more than his…

Babymama Gang: Popular Video Vixen, Beverly Osu Announces Her Pregnancy By Flaunting Baby Bump On IG
Entertainment
55 views
Entertainment
55 views

Babymama Gang: Popular Video Vixen, Beverly Osu Announces Her Pregnancy By Flaunting Baby Bump On IG

MT - January 19, 2018

It seems beautiful video vixen has join the list of baby mamas as she happily flaunt her baby bump on her instagram page, although the father of…

How A Young Nigerian Businessman Slumped And Died Hours After Mourning The Death Of His Friend
Shocking
45 views
Shocking
45 views

How A Young Nigerian Businessman Slumped And Died Hours After Mourning The Death Of His Friend

MT - January 19, 2018

A young Nigerian man based in the United States has just been reported dead after he was reported to have slumped and died just hours after losing…

DJ Cuppy Got More Than She Bargain For When She Tweeted About Recording A New Song
Entertainment
54 views
Entertainment
54 views

DJ Cuppy Got More Than She Bargain For When She Tweeted About Recording A New Song

MT - January 19, 2018

Nigerians on twitter are all sorts of savage and hilarious. After Dj Cuppy tweeted, Quote 'My throat is killing me, and I’m meant to be recording my…

Here Is How Rivers Indigenes Protested Against SARS Operation In The State (Photos)
Shocking
49 views
Shocking
49 views

Here Is How Rivers Indigenes Protested Against SARS Operation In The State (Photos)

MT - January 19, 2018

Residents of Rivers state today staged a protest calling for the disbandment of SARS operations in the state. The residents accuse officials of the State Anti-Robbery Squad…

Checkout New Photos Of Former Miss Anambra “Cucumber”, Chidinma Okeke (Photos)
Entertainment
55 views
Entertainment
55 views

Checkout New Photos Of Former Miss Anambra “Cucumber”, Chidinma Okeke (Photos)

MT - January 19, 2018

Never you be a victim of your own circumstance … The “future is now” The former beauty queen dropped one of the pictures and wrote: Quote “Go confidently…

Why Chelsea FC Could Be Banned For Two Transfer Windows By FIFA
Sports
43 views
Sports
43 views

Why Chelsea FC Could Be Banned For Two Transfer Windows By FIFA

MT - January 19, 2018

English Premier League Champions, Chelsea FC could be banned for two transfer windows as FIFA investigate the club for irregular signings, according to The Guardian. The club…

Fulani Killings: Why The Benue Crisis May Get Out Of Control – Sultan Of Sokoto Warns
Shocking
55 views
Shocking
55 views

Fulani Killings: Why The Benue Crisis May Get Out Of Control – Sultan Of Sokoto Warns

MT - January 19, 2018

Saad Abubakar, the Sultan of Sokoto, has queried the competence of the security agencies and their inability to stop the attacks and killings by herdsmen in Benue State.…

My Side Chick And My Personal Ashewo – IK Ogbonna Writes Sweet Message To His Wife On Her Birthday
Entertainment
55 views
Entertainment
55 views

My Side Chick And My Personal Ashewo – IK Ogbonna Writes Sweet Message To His Wife On Her Birthday

MT - January 19, 2018

Nollywood superstar actor, Ik Ogbonna has celebrated his wife in a unique manner by chosing to call her his side chick and ashewo in a post he…

This Plus Size Man and Fiance Spice Up Their Pre Wedding Photos With Raunchy Display
Romance and Love
54 views
Romance and Love
54 views

This Plus Size Man and Fiance Spice Up Their Pre Wedding Photos With Raunchy Display

MT - January 19, 2018

This fun-loving couple have got themselves trending online after sharing their lovely pre-wedding photos. The pair identified as Prince Biggs and Sugar Girl decided to spice up…

Meet Nigeria’s First Female Combatant Pilots In History Since 1960 Independence (Photos)
Best of Nigeria
59 views
Best of Nigeria
59 views

Meet Nigeria’s First Female Combatant Pilots In History Since 1960 Independence (Photos)

MT - January 19, 2018

The Nigerian Air Force (NAF) has disclosed on Wednesday, January 17, 2017, during commissioning of 11 young pilots that the two female combatants among the pilots are…

Meet The Governorship Aspirant “Melting The Hearts” Of Online Users (Photos)
Politics
46 views
Politics
46 views

Meet The Governorship Aspirant “Melting The Hearts” Of Online Users (Photos)

MT - January 19, 2018

The 2019 general elections will be apparently be great. A governorship aspirant, comrade Sani Garba Gusau has become an online sensation after melting hearts of online users…

Loading...