The plan of stock trading
More discipline that has contributed to their success as their philosophy itself. Remember that the key to any plan is how well it holds in time.
1. There is no “certainty”, and there is no trading system that is 100% accurate. Your goal, as a trader is to usethe tools available and try to develop a board. Base your transactions on solid fundamentals and techniques of reasoning, Rather than on intuition and long shots. If you can develop a competitive advantage, however small, over time you will be successful.
2. The trader must be able to admit that they made a mistake. Do not become financially or emotionally attached to a loss of trade. Avoid the pitfall of being emotionally involved in a transaction.
3. An investment peak is only part of the equation. An operator should diversify sufficiently for growth with equity can be consistent and the likelihood of a catastrophic loss can be reduced. The decline in the percentage of traders account dedicated to one of the largest exchanges are likely to be successful traders. Even if the merchant has a perception of the investment edge, it is unwise to run the risk of ruin, and put it all on one job. The aim is not only to make money but also to be able to continue to earn money for a Period of time. A trader must learn the basics and the importance of money management.
4. Lack of experience in the market because many traders make the mistake of taking small losses and let profits run. Fundamental commercial wisdom dictates otherwise. Where, in a gain of commerce, be patient and fully capitalize on the success. The axiom is commercial, “cut your losses short and let your profits run.”
5. A trading system should not be difficult, long, complicated and stressful to be profitable. In trading systems, as in many other things in life, simple can be better
6. Quality salesman, be careful and never let greed take control of a winning position.
7. Be aware that the lower volume indicates that the market is not accepting higher prices or lower, which might indicate a market turn.
8. Learn from your mistakes. Never a trading error without asking yourself why.
9. Do not trading decision based solely on margin requirements, and still trade within your abilities. Staying true to your trading plan and monitor the negotiation style that suits you best.
10. Do not commercial markets that you do not understand. Trade with confidence and conviction. Commerce only with venture capital and be aware of the risk of losing. Divide your money into 6 equal parts and is likely more than a tenth of your capital on a trade.
11. After a long period of success or a period of profitable trades, try to avoid the natural tendency towards increasing your business. Conversely, the use of self-discipline when a trade goes against your position. Take your loss and wait for another opportunity. Never increase your trading after a loss.
12. Do not enter the market because you are concerned about pending and / or off the market because you have lost your patience. No more trade and adhere to the rules of managing your risk
13. Do not change the decision to buy simply because the share price is low or sell just because the price is high. Do not change your position on the market without having a good reason that is based on a fundamental rule or technique that indicates a change in trend.
14. The most active trade of commercial stocks and to refrain from the slow markets. Commerce “market” to the extent possible and try to avoid setting prices for buying and selling.
15. When the market is moving with your position and you use a stop order, then increase your stop so as to lock in your profits. Protect yourself against the possibility of turning a profit into a loss.
16. The trend is your friend “, and never buy and sell if you fragility of the trend to your fundamentals and technical regulations. If you are in doubt, then exit the market. Only trade if you feel confident with your trading strategies.
17. Trade in five or six different stocks at the same time, to avoid any detention of your capital in a single stock.
18. An operator should establish a “surplus account,” after a series of success or winning trades. The goal is to keep the “budget surplus” for times of crisis or panic 20. It is difficult to try to guess where top and bottom of the market, rather than letting the market prove its top and bottom.







Leave a Reply