If you’re interested in online stock trading you should know that buy and hold investing is for suckers. Need proof?

  • March to December 2000 the NASDAQ has lost over 50%

  • 1974/1975 Market lost over 50%

  • 1987 crash Market fell by over 30% in only a few of months.

“Don’t worry about where the prices are going. Worry about what you are going to do when they get there.” -Richard Dennis

Never turn on your screen and say, What looks good today? You need to have multiple stock candidates that you would buy or sell short if they reach your trigger price. Let the stock come to you. Have a previously chosen entry price and when it is reached buy the stock. Next you must have multiple exit strategies.

What price -initial stop loss- will you sell at if stock starts going down (how much or what percentage of your investment are you willing to loose)?

How will you take your profits? What price will you sell at if it goes up? Will you sell half at one price and then the rest at a higher price?

By how much will you trail your stop? Meaning if it goes from $50 to $60 and turns around- will you sell once it gives back 2%, 4%, 5% etc…when will you sell to lock in your profits?

Remember you can’t control prices – only your reaction to those prices.