The average trader in the market has worked in the market for between a month and a year. Traders work in a small window of time and do so on small trade positions (with a small percentage of market action) and a small amount (about a $500 trade amount). Many traders work for up to seven years before retiring.
The next question is what are your current trading positions and what are the top tips to keep going?
Top Tip #1: Make sure you are prepared for the short position.
There are a lot of people who think that they have never seen anything like the stock market and they are in the most powerful positions right now. These people get nervous and start to worry that things might change overnight.
This article by Scott Johnson of the Motley Fool explains the risk in this way. In short, they are trying to predict the market.
The short position is the price at which you sell a stock from a position that you took on the call of a certain stock. With the short position, you are trying to increase your position in the stock. The point of the short position is to be ready for the long position after the market does some unusual things.
For example, if you buy a stock with a certain stock at the short price, you would want to wait until there was an increase in demand for that particular stock to buy it from that position, and then sell it. If the demand and price is higher than the market price, you could sell the position.
The key to making your position as long as possible (called “the long side”) is to buy a position to buy more than you sell immediately. If the market goes down, you still have the same amount you bought. The important thing to remember about short positions is that you need to be willing to wait until there is an increase in demand. Don’t sell your positions too quickly; if you sell them too much, you would not be able to sell the same stock, or even a similar one.
The key to making this work, is having a good idea of the market and making a call with your short selling stock. Don’t just sell the stock when the market goes down; make sure you buy it for a price that is lower than what you are selling instantly. The reason you want to have a good idea of the market and what you want to trade with it is so when you are making a call, you will know exactly what to do.