Tips for Buying & Selling Individual Stocks

Tips for Buying & Selling Individual Stocks

Buying stocks? Use the below tips to maximize your profits and limit the downside!

* Buy in small lots and "leg" into a stock slowly building your position.
Example... Buying 100 shares? Buy 25 shares each week for a month.


Buy a cheap out of the money put as a strategy to protect your long term investments. If your investment goes down beyond the strike price, you will make money on the put, which will offset your stock loss. This will set in a floor and you can not lose any more money than your floor. (A put is a option contract, in which you are betting on the stock price to decline over a certain period of time)


Use a Stop Loss strategy for your short term investments - Setting a stop Loss Article - Removing emotion from your stocks is the best way to protect yourself from a loss. Set a stop limit for every short term investment. (8% - 10%) If the stock declines to your acceptable loss level, your stock will be automatically sold. Prevents you from hanging onto a stock that continues to slowly decline as your losses grow larger and larger.


Use Technical Analysis to help determine your entry and exit points.


Do your homework!! Never buying a stock without researching it first! Either use Fundamental Analysis or Technical Analysis before placing an order.