Stock Trading Scheme
1. This discipline contributes more to their success than their trading philosophy itself. Keep in mind that the key to any plan is to continue over time.
2. There is no "sure thing", no 100% accurate trading system. As a trader, your goal is to use the available tools and try to develop the advantages. Put your deals on a good basis and technical reasoning based on
rather than on the buttocks and long lenses. If you can develop an advantage, but as time goes by, you will be successful.
3. Traders must admit that they have made a mistake. Do not promise to lose trade in emotional or financial terms. Avoid traps associated with any industry affection.
4. The edge of investment is only part of the equation. A trader should be fully diversified so that the growth of the equity is consistent and may lead to catastrophic losses. The lower the percentage of traders is, the greater the chance that a trader of any transaction will succeed in trading.
Even if the trader has an advantage that is considered to be an investment, it is inevitably risking bankruptcy and putting it all in a deal. The goal is not only to make money, but also in the
extended for some time has been to make money. Traders must learn the basics and the importance of capital management.
5. The lack of market led to many traders have a small profit, loss of loss of the error.
The basic trading wisdom determines the opposite. In the winning deal, be patient and take advantage of success. Trading axiom is "to reduce losses and let your profits run."
6. Trading systems do not have to be difficult, time consuming, complex and stressful to profit.
In the trading system, like many other things in life, simple can be better
7. As a trader, be careful not to let greedy control win.
8. Please note that the decline in volume usually indicates that the market does not accept higher or lower prices, which may indicate a market shift.
9. Learn from your trade mistakes. Do not ask yourself why you do not make trade errors.
10. Do not only trade decisions based on margin requirements, and always trade within your ability.
Keep the real trading plan and follow the most suitable for your trading style.
11. Do not trade you do not understand the market. Have faith and faith in trade. Only dealing with venture capital, and aware of the risk of losing. Divide your capital into six equal parts and will not risk more than one tenth of your capital in any transaction.
12. After a long period of success or profitable trading hours, try to avoid increasing the natural tendency of trading activities. On the contrary, when trade violates your position, use self-discipline. Take away your loss and wait for another chance. After the loss will never increase the transaction.
13. Avoid entering the market because you are anxious because you have lost patience and / or exit the market. Do not over-trade and comply with your risk management rules
14. Do not buy because of low or low prices for sale. There is no good reason to follow the basic technical rules that instruct the trend to change, and do not change your position in the market.
15. Trading the most active stock to avoid the slow trading market. Trade "in the market", as far as possible to avoid a fixed price.
16. When the market moves with your position, you are using stop-loss orders and then raise the stop to lock your profits. Protect yourself from the possibility of loss of profits.
17. "Trend is your friend", if you are based on your fundamentals and technical rules are not safe trend, do not buy or sell. If you have any questions, please exit the market. Only when you are confident about the trading strategy can you trade.
18. A transaction of five or six different stocks to avoid bundling all the capital in any single stock.
19. A series of successful or winning traders should establish a "surplus account". The goal is to retain the "remaining account" during an emergency or panic. Difficult to try to guess where the top and bottom of the market are, but let the market become the top and bottom.