Generally speaking, long term investors don't pay much attention to short term trading principles. They aren't concerned with short term price swings or any like the stochastic oscillator. But then of you want to play safe with long term stock trading together with the momentum stocks the make take into consideration a couple of trading principles when it comes to executing a trade. These principles can help you avoid mistakes and prevent you from overpaying for a stock because of a routine market action. Let us now take a look at the tips implementing which you can execute your stock trading to the fullest.
* Go for a limit order when it comes to your buy order. In case of a limit order, the investors enter a particular price limit that they'll purchase the stock for. The substitute is the market order; where an investor enters the trade as well as allows the market decide what price they'll be paying for the stock. Limit orders are helpful because you'll get the stocks at the price you desire. In case of high volatile market, the limit orders prevent your from overpaying.
* For investors who are investing for a short term, commissions are indeed important because the trade volume can add up by adhering to this approach. In the like manner, costs are important if you are a long term investor.
* Before sending an order, make sure to get hold of a stock quote. This is particularly important in case of volatile days that we have experienced over the past few weeks. Stock prices may swing in a dramatic manner. Over and above, running a quote will help you known whether you are using the right ticker or not.
* Ensure reviewing your trading system as well as trades so as to make sure that you are on the right track. If you have entered any limit order ensure that the limit price is what you meant to enter,
* Ensure reviewing order confirmations so as to ensure you were charged correctly. After you have entered a trade you will get a conformation request. Ensure reviewing the confirmation request adequately. Verify that the company bought is accurate; the number of stocks bought is right as well as the commissions charged are exactly the same as that you had expected. If you find anything wrong, ensure contacting your broker at the earliest.
* Similar to short term investor you need to maintain trading records of your trades. You can maintain an excel sheet for the same. This approach of yours will help in reviewing your performance.

You are sure to learn a great deal by reviewing your portfolio as well as by taking a look at your mistakes. Well, these aren't that only tips that help you execute your long term stock trading to the fullest.
The bottom line is that with long term stock trading you can ease much of your stress and earn good profits in return. This is certainly a better option as compared to day trading.