The following tips can be used to help increase the profitability of your trading.
#Make money when stocks falling price
One of the best kept secrets of professional traders is the short trade. This type trade allows you to make money when a stock falls in value. Traditional trading means buying a stock and hoping the price rises to enable you to make a profit. Short selling is the process whereby you sell a stock that you do not own. This is done by borrowing the stock from a broker, enabling you to give the stock to the person to whom you have sold. Then when the price falls, you simply buy the stock in the market (at a price lower than you sold it)and deliver the same amount of stock back to your broker that you borrowed. The profit you make is the difference in price between when you sold and bought the stock multiplied by the quantity.
Having the ability to short sell enables you to make money not only when prices rise, but also when rices are falling.
# Automate your trading
Many professional traders have automated trading systems that assist their trading decisions. Once a suitable strategy or stock picking formula is created by professional traders, they often convert it in to a computer program that allows them to automate their trading in the future. The main benefit of this is that it enables them to spend much less time on research and focus their attention on profitable trading.
# Take small profits
Many traders make the mistake of trying to wait for their trades to make massive profits before selling. Instead you can often be much more successful trading more regularly making a small profit each time. Again this tends to be how the professionals trade.