Trading On A Dime

The funny thing about trading is that if you don’t feel like you are trading on your last $100,000 – or $10,000 – or $1000 or - $100, you are going to lose. You should always be watching the downside, and the upside will come often enough.
The best way to start is to start modestly. Practice with money you can really lose. And learn…but don’t take too many chances. The same principles apply whether you are trading on $500 or $5,000 or $50,000. Fees are more dramatic, but fortunately, unless you are an institutional block trader, you are treated very fairly on the exchanges.

Here are some rules to live by if you are trading on a dime:
Choose a broker with low fees. Consider how you will be buying – usually on limit orders – and figure in what you think it is going to cost. Take it all into consideration, but be careful not to go with one who charges too much.
Learn how the business works

Know the difference between a Market Order, a Limit Order, a Stop Order, AON (All or None), GTC (good til cancelled) and Day Order. If you don’t immediately know what all of these are, read all you can and choose a book on investing!
Know your stocks

Never buy a stock you do not know. Never jump without knowing what you want to buy it for, and what you want to sell it for.
Learn ABSOLUTE LOW!

This is my ultimate concept for buying. Just like in a retail store and just like at a fine jewelry store, the profit is not made when you sell your stock. It is SECURED when you buy the stock at its ABSOLUTE LOW. This is a relative term, but please read my opinion of what qualifies as an ABSOLUTE LOW. Read about it HERE!
Place your GTC order to sell IMMEDIATELY after you buy!

That is not a suggestion, that is mandatory. You may kick yourself someday when a stock doubles, and “all you got was the first 25%” profit.
Take a profit when it comes:

If you buy at $2 and you targeted $3, sell if you are close… and you are making most of the money you planned. Take that $2.75 if it comes!