DETERMINE ENTRY POINTS
Having made your selection of stocks does not mean a trade should be entered immediately. You have yet to determine the specific conditions including entry price, which allow you to execute your trade, and initial protective stops, which allow you to exit should the market turn against you. This is the challenge.
In trading, you need to know when to engage in a trade and when not to trade; you do not need to trade every day. You cannot be trading all the time, especially when the trend is against you. Catching the trend of the market is the key. However, the market does not move in trend all the time. When the market is not trending, you have to stay on the sideline. You will win when you are trading with the trend because you will have the support of the trend. You will lose if you trade against the trend, whether in a bull market or in a bear market.
Do not overtrade. Overtrading means making trades beyond your means and ability.
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