The best way to limit stock trading risk is to develop a stock trading plan or system.

Use A Stock Trading Plan

A trading system is developed using your fundamental and technical analysis. It takes time to develop and will ultimately be dependant on your own trading style. And you must constantly monitor and improve its performance if you are to continue to trade successfully.

Know Your Costs

Trading costs are often under estimated or even ‘forgotten’ about when trading. But trading is not cheap and under estimating your costs can quickly turn an apparently winning trade into a losing one. We are not just talking about commission either but also ’slippage’ on your trades. (The difference between your desired trading price and the actual trading price.)

Todd B.

Related Posts

Tagged with: • • • • •

Filed under: Blog Posts

Like this post? Subscribe to my RSS feed and get loads more!