10 trading tips to keep you sane and solvent

Extreme market volatility over the past year and the agony of watching the market fall off a cliff while pension managers are out playing golf has driven more and more people into short-term trading.

Trading follows a different methodology from investing: you are looking for short-term movements and speculating on price falls as well as rises. Investing entails looking for value and taking a longer-term view.

Here are 10 trading tips that have stood the test of time.

1. Knowledge is king. Have an economic calendar, and a company reporting and dividend schedule to hand. Devour the business pages and read the odd trading book. Have a financial television channel on, but avoid information overload.

Hot Stock Investing .. How to Pick Hot Stocks with Momentum Stock Trading

Profitable day traders recognize that momentum trading is among the fastest & most effective ways to harvest BIG piles of cash in the stock market.

The problem is that if you don’t know what stocks to look for and how to approach them while limiting your risk, you won’t even get close to making some profits.

You don’t necessarily have to trade momentum hot stocks all the time. But you can learn how to take advantage of them when you encounter the best opportunities while at the same time limiting your risk.

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Common Day Trading Pitfalls When Executing Online Trades

There are a number of things that can go wrong when you day trade stocks over which you may have little or no control. These form part of the risks associated with day trading of which you should be aware. Here are some of the common pitfalls encountered by many day traders relating to the execution of trades:

- Execution of your orders are delayed due to order backlog or technical problems causing you to be filled at a higher price than you intended to pay.

- You enter the wrong stock symbol when placing your order online.