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March 3rd, 2010, 10:30 PM
On the three basic rules the method stands on: the trend, the exercise of stop and profits Implementation. Securities trading success is a matter of method of work. Most traders believe that this method means where to buy and where to sell. Interest and success are things much more wide and deep. Success comes from being able to maintain a few basic rules. Desire to succeed in commerce is like surfing. Merchant fighting forces ten times stronger and to win freedom means the ability to trade on the basis of an independent, dealer must build uncompromising discipline. There are many rules for trading securities great importance. But at this stage I will present only the first three, the basic building blocks are a good trade for long.
The first rule: just because the trend around. One of the basic mistakes doing them a private dealer is buying against the direction of the trend. It stems, I believe for two reasons: first is the obvious desire to buy cheaply. Share a certain percentage down suddenly looks attractive and cheap. Not so. Buy cheap is desirable, though not too cheap. Working against the trend also stems from the merchant’s point that he wanted to prove himself first determine accurately predict the turning point in the market, be the first joins, scratch the first percentage, to be right. There is nothing silly about it. Private dealer cannot determine, in most cases, when a cheap market, when it’s expensive, or when he explains. Only one who can do it is the market itself. Moreover, in a desperate attempt to locate the turning point involves self-esteem, ego, mental pressure, grinding and many other mental factors on long-term consequences on the merchant’s confidence and ability to operate on a systematic basis, may be destructive. Therefore, let the market determine the direction and then splice it.
The second rule: not a professional dealer to conduct a transaction without knowing in advance what point loss amputation. Professional terminology is “Stop loss”. Many merchants find that participants tend to position was wrong and add insult to injury. Not only do not interrupt the deal failed immediately with the beginning, as it should do to maintain the loss as he is tiny, but they’re trying to center the losses, In other words, buy more at a lower price. the reason I’ve never understood this. First purchase if proved wrong, why make another one. the right thing is to interrupt the transaction, while a tiny loss. acquire second time only if the initial purchase proved to be successful.
The third rule: Do not allow to become a profitable venture failed – one of the most painful losses, perhaps it would be right to say the most stupid, issued when the failed transaction becomes profitable. Buying a stock trader watches a given price increases. To combine a greeting when he sees the stock behaves in accordance with expectations. At one point, an unexpected change in trend is changing. Profits are evaporating and the situation gets out of control. Ability to read the stock market is low and clear behaving as expected. It is a mistake to sit and wait for another turning point. In this case, the dealer replaces action hopefully. Instead of cutting the deal at a point where there is still space, he sits and prays to renew the trend increases. Pointless reason. Never allow the deal failed to become profitable. Crop time.
http://www.creesh.com/?tag=trading-rules
The first rule: just because the trend around. One of the basic mistakes doing them a private dealer is buying against the direction of the trend. It stems, I believe for two reasons: first is the obvious desire to buy cheaply. Share a certain percentage down suddenly looks attractive and cheap. Not so. Buy cheap is desirable, though not too cheap. Working against the trend also stems from the merchant’s point that he wanted to prove himself first determine accurately predict the turning point in the market, be the first joins, scratch the first percentage, to be right. There is nothing silly about it. Private dealer cannot determine, in most cases, when a cheap market, when it’s expensive, or when he explains. Only one who can do it is the market itself. Moreover, in a desperate attempt to locate the turning point involves self-esteem, ego, mental pressure, grinding and many other mental factors on long-term consequences on the merchant’s confidence and ability to operate on a systematic basis, may be destructive. Therefore, let the market determine the direction and then splice it.
The second rule: not a professional dealer to conduct a transaction without knowing in advance what point loss amputation. Professional terminology is “Stop loss”. Many merchants find that participants tend to position was wrong and add insult to injury. Not only do not interrupt the deal failed immediately with the beginning, as it should do to maintain the loss as he is tiny, but they’re trying to center the losses, In other words, buy more at a lower price. the reason I’ve never understood this. First purchase if proved wrong, why make another one. the right thing is to interrupt the transaction, while a tiny loss. acquire second time only if the initial purchase proved to be successful.
The third rule: Do not allow to become a profitable venture failed – one of the most painful losses, perhaps it would be right to say the most stupid, issued when the failed transaction becomes profitable. Buying a stock trader watches a given price increases. To combine a greeting when he sees the stock behaves in accordance with expectations. At one point, an unexpected change in trend is changing. Profits are evaporating and the situation gets out of control. Ability to read the stock market is low and clear behaving as expected. It is a mistake to sit and wait for another turning point. In this case, the dealer replaces action hopefully. Instead of cutting the deal at a point where there is still space, he sits and prays to renew the trend increases. Pointless reason. Never allow the deal failed to become profitable. Crop time.
http://www.creesh.com/?tag=trading-rules