All novice traders are interested in: which stocks to select for trading?
All promotions can be divided into several categories:
- thick
- thin
- fast
- slow
- crazy
- smooth
- Dead
From this list, I recommend for beginner traders to trade slow and smooth with an average volume..
Smooth
in these stocks, the movements occur smoothly without abrupt changes and jumps.. There are clean. amplitude movements as in one, so on the other side. You can take a good position and sit out almost the entire turn with little risk.. The reward-to-risk ratio is always very high.
Slow - very similar to smooth, only in such promotions movements are slow. You can take a very large position with little risk and trade several of these stocks at the same time.
I do not recommend for beginners to trade fast and crazy stocks., since movements occur very quickly with sharp jumps and, accordingly, the risk for inexperienced traders is very high.
As for dead stocks, they should be avoided altogether. All day movements are very small and the risk is equal to the potential profit.
And we all know perfectly well, that for successful trading, the profit-risk ratio should be at least 3 to 1.
I wish you all good luck and good promotions.!