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“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. For everyone who asks receives; the one who seeks finds; and to the one who knocks, the door will be opened. Matthew 7:7-8

7 Oct 2018

STOCK MARKET--Some Golden Rules for Share Traders

Use a system, any system, and stick to it..
 Apply money management techniques to your trading.. Do not overtrade..
 Take a position only when you know where your profit goal is and where you are going to get out if the market goes against you.
. Trade with the trends, rather than trying to pick tops and bottoms.. Don’t trade many markets with little capital.

Don’t just trade the volatile contracts.. Calculate the risk/reward ratio before putting a Establish your trading plans before the market opening to eliminate emotional reactions. Decide on entry points, exit points, and objectives. Subject your decisions to only minor changes during the session.
 Profits are for those who act, not react. Don’t change during the session unless you have a very good reason.

Follow your plan. Once a position is established and stops are selected, do not get out unless the stop is reached or the fundamental reason for taking the position changes.

Use technical signals (charts) to maintain discipline – the vast majority of traders are not emotionally equipped to stay disciplined without some technical tools.. Use a disciplined trade selection system…an organized, systematic process to eliminate impulse or emotional trading.

Do not overstay a good market. If you do, you are bound to overstay a bad one also.

. Program your mind to accept many small losses. Program your mind to ‘sit still’ for a few large gains.

Most people would rather own something (go long) than owe something (go short). Markets can (and should) also be traded from the short side..
 Don’t blindly follow computer trading. A computer trading plan is only as good as the program. As the old saying goes, ‘Garbage in, garbage out.’.
 When you open an account with a broker, don’t just decide on the amount of money, decide on the length of time you should trade. This approach helps you conserve your equity, and helps avoid the Las Vegas approach of ‘Well, I’ll trade till my stake runs out.’ Experience shows that many who have been at it over a long period of time end up making money..
 Don’t trade on rumors. If you have, ask yourself this: ‘Over the long run, have I made money or lost money trading on rumors?’ O.K. then, stop it..
 Beware of all tips and inside information. Wait for the market’s action to tell you if the information you’ve obtained is accurate, then take a position with the developing trend.. Don’t trade unless you’re well financed…so that market action, not financial condition, dictates your entry and exit from the market. If you don’t start with enough money, you may not be able to hang in there if the market temporarily turns against you.

Be more careful if you’re extra smart. Smart people very often put on a position a little too early. They see the potential for a price movement before it becomes actual. They become worn out or ‘tapped out,’ and aren’t around when a big move finally gets underway. They were too busy trading to make money.

Stay out of trouble, your first loss is your smallest loss.

Analyze your losses. Learn from your losses. They’re expensive lessons; you paid for them. Most traders don’t learn from their mistakes because they don’t like to think about them..

If you’re just getting into the markets, be a small trader for at least a year, then analyze your good trades and your bad ones. You can really learn more from your bad ones.

Carry a notebook with you, and jot down interesting market information. Write down the market openings, price ranges, your fills, stop orders, and your own personal observations. Re-read your notes from time to time; use them to help analyze your performance.

‘Rome was not built in a day,’ and no real movement of importance takes place in one day. A speculator should have enough excess margin in his account to provide staying power so he can participate in big moves.

Take windfall profits (profits that have no sound reasons for occurring).. Always use stop orders, always…always…always.

Don’t use the markets to feed your need for excitement.
Wish you good luck,                              See you later.

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