One last profit taking approach you may want to consider is taking partial profits on that first strong move. In other words, when you get that first move in your favor and you move your stop up to your purchase price, you may want to sell half of your position and take some profits early. You then let remaining position run using trailing stops until market stops you out. This approach is used by many swing traders and will result in more winners, but profits will be smaller. But remember, smaller profits mean that you need more winners.

At end of every month, add all your deposits together and record that number in writing. Then you add up all your expenses. Subtract expenses from deposits and add that to your beginning balance (or last month’s balance). Check your statement to see what fees your bank charged and deduct that and Voila! You have an accurate account balance! Check your figures against your current statement and you might even want to take advantage of your bank’s telephone based customer service to confirm your numbers.

If you find no discrepancies, everything is really pretty close if not perfect and you’re done – until following month rolls around. Then spend a few minutes to do it again; you’ll be very glad you did… this is time well spent and you will reap rewards of developing discipline in your financial management methods and philosophy. No surprises in mail (returned checks), no bounce fees (to your bank and merchant), and most importantly—no damage to your credit rating.

We cannot emphasize importance of developing these kinds of good financial management habits.