Saturday, February 11, 2012

Cramer's 10th Commandment of Trading: Don't Trade Flow.

Don't trade Flow!  Don't become a Loser!
 Cramer's tenth commandment of trading is, 'Don't trade flow'.  This simply means just because you see a stock going up a lot, it doesn't mean that you should trade the stock just based on seeing it move up.  What usually happens in this situation is that flow traders jump into a stock after a big run up and then the stock immediately turns against them and goes down.  This is a great way to lose money.

It is very important that you know the basic fundamentals of investing and the real reasons that you are buying a stock for a trade.  Trading flow is an ignorant and embarrassing way to lose money.  Loser's lose money this way.  Don't be a loser!

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