To minimise stock trading risk you should use both technical analysis and fundamental analysis.

Use Fundamental and Technical Analysis

Some traders claim to only use technical analysis when stock trading but we firmly believe that you must use fundamental analysis as well.

Over the next few weeks we are going to be looking at stock trading risk management. Trading is obviously not risk free and losses are inevitable. What we need to do is minimise those risks and continue to trade.

Getting the Right Tools

You need the right mix of trading hardware and software before you begin trading. Stock Trading Tools are required to identify trading opportunities, charting software, portfolio analysis and monitoring your positions. The right tools are critical for you to find the right trades and monitor their performance.

Dont’ Over Diversify

Diversify when stock trading as everyone will tell you. However it is just as big a stock trading mistake to diversify too much as too little.

There are only so many hours in the day and you are just one person, so there will be a limit on how many positions you can manage and monitor.