3 Basic Principles of Stock Trading that Beginners Must Have

Stock trading is in great demand by beginners who are new to stocks. As a beginner, of course there are many things that must be learned so that trading really brings money.

And it's no secret, a successful stock trader usually has a trading system that consistently brings money. Thus, it can be said that in stock trading, which is currently very easy to do online with a smartphone, for example with the IPOT application belonging to Indo Premier Sekuritas, there are actually rules that are held by the trader.

Each stock trader usually has a trading system that is unique and individual in nature and cannot be equated from one trader to another. The trading system or trading plan itself is understood as an organized, regular and repeated trading rule.

Furthermore, a successful trading system means being able to repeat successful trades. In other words, a successful trader is usually disciplined in carrying out his trading rules. Discipline in the rules is the same as being rational in the trading rules that are made.

Well, because everyone's trading system is different, that doesn't mean there aren't basic principles. Here are 3 basic principles of a trading system that a trader should understand:

1. Can understand trends

In stock trading, of course, you should not underestimate the trend because if you trade on stocks that are trending, the opportunity to make money is wide open. However, when there is a trend or something happens, as a trader, you must be wise and not greedy, because the market is unpredictable. Many events in stock trading of people who have already lost money have actually turned around because of their greedy nature. Stocks that have been long enough to suddenly turn around are losing money because they have been holding back for a long time.

2. Obey the entry and exit rules

A successful trader is largely determined by his ability to buy and sell at the right time. A smart trader can enter and exit at the right time according to the rules of risk management.

3. Can manage risk

Stock trading, of course, cannot be separated from risk. The risk in question is of course related to losses. Faced with this risk, a trader must have risk management skills starting from determining the amount and amount used for trading, setting targeted funds, determining losses that are brave to bear. In addition, the thing that should not be ignored is the ability to regulate emotions so that they are prepared for what is called risk.