The all-important key is to be very disciplined about cutting losses. Even successful, experienced traders can lose everything if they don t adhere to strict rules. Many people are not cut out to be traders. Some people have problems understanding charts, or cutting losses, so they should find other ways to earn an income. On the other hand, these same individuals may have great success as investors.
Trading is a business, and requires the same rigor as any other business.
My system is very simple. I look for stocks that are ready to bounce up off of support. If a stock bounced off a certain price before, it is likely to bounce from that point again. That is where I buy it, just as it starts to take off. If I get faked out, and the stock drops down through the support level, I get out immediately.