You will be amazed at how this one simple task of keeping a trading journal will help eliminate some of your biggest trading demons, and therefore enhance your ability to win. Don t make low-priced stocks your main focus. Because of limited funds, many traders opt for trading lower-priced stocks. What you must realize is that the odds of winning often increase as you climb the price ladder. Don t diversify.
Diversification has less of a place when a trader has talent.
In short, heavy diversification is nothing more than a substitute for lack of talent. While there are appropriate times to diversify, throw your energies into becoming an overall winning trader. Realize that no action is, at times, the best action. Traders erroneously assume that if you re good, you ll always be able to find something to do or some stock to trade. Most traders fail to see the benefit of knowing when to sit on their hands.