Traders are told not to use tips to trade from, and that is good advice. But using tips about trading to help be more successful is a different case altogether.
There is a temptation to discount tips as not providing real value because by their nature they are short and simple.
That type of thinking is a mistake. A good tip is not an end, it is the means to an end. It is the spark that makes you think in more depth about a specific aspect of trading.
Here are 30 trading tips, from real traders, who put their own money on the line every day:
If you have to think for more than 5 seconds about how your trade is going to work, then it’s too complicated. Simple is Sexy. via @chicagosean
Be contrarian in your thinking when it comes to entries and exits. If you run with the herd you are more likely to get run over by chasing the obvious. via @TodayTrader
Relative volume is the most important indicator for a chart breakout. via @stt2318
Learn the language…pop open the StockTwits suggested stream and immerse yourself for 6 months in the flow and language – 20 min a day via @howardlindzon
Always think about risk first, profit potential second, and remember that you don’t have to know where the market is going to make money. via @StockSage1
There are a lot of good stock pickers out there. That is 1 percent of trading. Trade management/position management; that’s the next level stuff that takes you from doing this as a hobby to doing it for a living. via @Kunal00
Every stock chart is telling you a story…if you don’t understand the story, don’t trade the stock. via @AnneMarieTrades
If you are trend-trading then the base is your friend – stay close to the base and trade around the base selling into extended moves away from the base (chasing after extended moves is probably the fastest way to blow-out for new traders). via @HCPG
Don’t just work hard. Work hard to work smart. via @1nvestor
Be aware of your risk limits before your trade and play within them. Most trading mistakes come from extreme emotions and extreme emotions arise when a trader takes more risk than he is prepared to take. via @ppearlman
Write out your complete trade idea on paper; pretend your are presenting it to a mentor or trader you admire. If you don’t need a ton of caveats or extra lines and indicators it’s probably a good trade. via @GYSC16
It doesn’t hurt to be “right” on market direction but it is far from necessary to be a winner in this game over the long-term. via @StockSage1
Upgrades = potential selling opportunities. Downgrades= potential buying opportunities. I find this works when there is no significant news about the stock. via @TraderInvestor
Community is great, but if you want to pay the bills, learn to trade and stick with your own ideas. via @dinosaurtrader
Step away from trading when stressed, fatigued, physically ill, or dealing with an issue that has you off-balance mentally or emotionally. via @PCHtrades
Know your risk level aka ‘uncle point’ BEFORE you make a trade or investment NEVER afterwards. via @tradewithpete
Don’t fall into the trap of thinking you are right. Remain objective. The market doesn’t care what you think. via @MarketPlunger
Price Action Trumps All. You can improve your trading by just simply paying attention to price action. via @TheArmoTrader
Say “nope” to dope and “Ugh” to drugs. via @bclund
Know your timeframes – a great set-up for an intra-day scalp trade won’t be of any use if you plan on holding the stock for a swing. via @tsxswingtrader
Trade what you see, not what you think. via @1nvestor
Trading when you’re tired, angry or distracted is a recipe for developing blinds pots and ignoring proper trading signals. via @AnneMarieTrades
One can be right on direction 9/10 times and still come out a loser if one cannot manage the downside when one is inevitably wrong. via @StockSage1
It’s the trader responsibility to adapt to the ever-changing market conditions. No strategy will work well in every market. You must constantly adapt. via @TraderStewie
Trade with the trend. Adhering to this one rule improved my trading immensely. via @thetradingwife
If you don’t use a wide, 30-minute chart to plan your trend and chop trades, do something better suited to you.” via @daytrend
If you are reversion-to-mean trading then enter on extended moves away from the base (entering too early/close to the base, and getting blown out before the reversal most common mistake here for reversion to mean traders) and sell back into the base. via @HCPG
Many plan their trade entries but to manage your risk you must also plan your exit and do it BEFORE you trade. via @harmongreg
Don’t be penny wise and dollar foolish in choppy markets. via @ZorTrades
Buy high, sell higher. I know it’s a cliché, but if a stock is hitting a 52 week high or better yet an all time high that means that it is doing something right and Wall Street acknowledges it. I’ve bought too many stocks on sale or based on valuation that don’t do squat or go lower while waiting on a catalyst. via @TrendRida
80% of trading is psychology. The best way to protect your confidence is to have a strong plan that produces consistent results and cut your losses quickly when your wrong. via @jfahmy
What bclund is, is the intersection of markets, trading, and life (with some punk rock, pop culture, and off-beat humor mixed in). Why not subscribe for free Via E-mail or Via RSS and follow me on StockTwits and Twitter.
Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading - The Best of the Best: Top Trading Tips For Our Times by clicking here.