Recently, made some bad trades for a lot of money and been feeling regretful. I got too impulsive and got swayed by dollar signs. Then reality hit the next day and I realized i made a mistake. Was wondering if there are any stock traders here who can relate? What can I do to become a better trader?
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Find companies with strong fundamentals that are underpriced. What to look for:
Earnings growth (EPS): At least 15% expected growth for the current and next year.
Price-to-earnings ratio (P/E): Must be lower than the earnings growth rate, showing the stock is not overpriced.
Dividends + Growth: I add dividend yield to EPS growth and compare against P/E to judge value.
Debt levels: Favor companies with debt-to-capitalization below 40%.
Stock charts: Prefer stocks showing upward momentum, not stagnation or sharp declines.
Don't trade on 'whims' unless you are using money you don't mind throwing away.
Try playing with fake money first!
This takes a lot of time and research - trade in a simulator for awhile https://www.investopedia.com/simulator/
edit also, I do a full analysis of my portfolio on the 1st of every month, looking at it every day will drive you crazy - I'm trading long term, I'm making about $20k/yr in dividends and interest and supplementing my fathers Social Security income.