Seven Points in Entering a Position.
1. Never Place Pending Order for the Next Day unless the Price provide a Good Margin of Safety or a Dividend Yield which fit your criteria.
2. Always have a Plan be it in Investing or Trading.
3. Give yourself a Setup, Trigger, Target Price and Stop Loss. This work for investment too but the criteria will be up to your objective and time frame.
4. Always make sure the Risk Reward is worth it and take note that is ok to miss an upside then to sink with a downside.
5. Before Entering a Position, make sure you check the XD Date and don't get caught with getting dividend at your own expenses. The same goes for rights issue and so on, that is even worst.
6. One way to help you to keep to your Stop Loss is to Chart out what is the downside for the counter when the market reverse on you. This should be done before you enter a Position, not after.
7. Last but not least, Working with the Trend is definitely safer then looking for bottom fishing.
Trade and Invest Safely Everyone!
Have A Merry Christmas!
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