Some stock trading tips

I would like share some stock trading tips.

1. Understand what kind of trading is best fit for you. Day trading, swing trading, positon trading, long term investment? If you have a full time job, day trading is probably not good for you. If you can watch stock market a few times a day during market hours, you may be able to do both swing trading and postion trading. If you can not watch the stocks during market hours, you can still make money by playing position trading.
2. Identify and follow the stock trend. Don't fight the sotck trend, especailly when the stock trend is strong. This is the key to become a successful stock trader. Stock have trends for different time frames: very short term trend, short term trend, semi-intermiediate trend, intermediate trend, long term trend. For example, if you are short term trader, if the short term trend is up and the uptrend is strong, you's d better not short stocks. And buying dips would be better approach. A lot of people who trading stock for many years still don't understand this well. If you are a position trader, you need to follow both semi-intermediate trend and intermediate trend. When the stock market crashed in 9/2008, the best approch would be sell the stocks when the trend switched to down and started to short stocks or buy bear market fund, which would have made you make tremedous money then. Hoever, most people were keep buying from the start of crash and lost a lot of money by fighting the downtrend.
3. Alway use stops. Any perfect stock trade setup can turn into a losing trade. Although good trading systems can make you money from stock trading, it can not guareentee you can make money from each trade. Any perfect stock trade setup could turn into a losing trade. You want to use traing stop to protect your trading capital.