Tips for New Investors

Tip #1 - Know how much you can Afford to Invest
Investing involves risk. You should only work with funds you can afford to lose without it affecting your quality of life. None of us begin investing with the intention of losing, but it is a reality.

Tip #2 - Know your limitations
Beyond the dollar amount you commit to trading, consider your personal limitations. Don't force yourself to learn day-trading if your personality is better suited to long-term trading.

Tip #3 - Create a Trading Plan
Yes, you've heard this a thousand times but it is worth repeating. You can not arrive at your destination without planning. I've yet to meet a profitable investor who made money without a personal trading plan.

Tip #4 - Develop your personal Trading System
Trading Systems are not a one-size fits-all category. What works for one investor may not suit another.
Your trading system should be specific to your financial and personal characteristics.

Tip #5 - Never Stop Learning
Whether you are CEO of a major corporation, or running your own Mom & Pop Shop; never stop investing in yourself. Investing in yourself pays off for Business and Personal Growth.

Source: Candlestick Forum Newsletter
December 4, 2008