dimanche 27 mars 2011

THE 24 GOLDEN RULES FOR SUCCESS IN EXCHANGE

Foreword
Whatever your level of knowledge about financial markets,Whatever your experience in the Exchange, it is always useful to review your goals and their achievement.
Do you sometimes feel that bad luck follows you? What the market wants you personnellemnt and takes pleasure in ,you choose the wrong value at the wrong time? Are you planning to give up these enormous profits that you tend to arms to help you slip through your fingers?
Before making this choice, think!
The only purpose of this post is to give you all that in mind
you already know (or have already known!) on the strategy and basic rules of  stock market investing.
Take time to read and reread this article, follow its advice,
Choose your strategy and make one of theme .

THE 24 GOLDEN RULES FOR SUCCESS IN EXCHANGE

To be a winner in the markets, the trader must have strict rules and must follow them.

1. Divide its capital,
Never risk more than a tenth of its capital on a share.
2. Use command "stop-loss" (stop sale).
Take into account the "noise" and the market volatility.
3. Do not make overtrading.
The number of locations must take into account a large gap in the market.
4. Do not let a gain become a loss.
It's hard to accept psychologically that a winning value can
change in trend. When one stock drops you shoud stop selling : Danger!
5. Do not go against the trend. (Buy when it drops or sell when it rises)
We find the rules of DOW. Everybody knows it , but we forget it very quickly, we thought to be smarter than the market.
Big mistake: we must always follow the market, solution: It falls  I sell, it's  up I buy.
6. At a doubt leave the market.
Do not stay in a market that is not understood.
7. Treat active shares.
Interact with liquid markets (many shares sold all days) with one matching easy. (Skip the orders to the bank by phone, not by mail).8. Do not put all your capital on a single value, a single sector, a single market.
Capital management: at least 5 lines (5 shares) and 10 lines maximum.
9. Do not limit your orders, pay the market price.
10. Do not close a position without reason.
11. Put money aside for emergencies.
Do not reinvest all your profits (keep 30% to pay taxes for the stock exchange!). The market you look to regain some of your winnings.
12. Do not buy just to cash a dividend.
13. Not to make a medium to decrease (the more it decrease more I take).
One of the best ways to go against the trend and pay dearly. The ruin.
14. Do not act out of impatience to enter or exit.
The cure for self-discipline. Be patient!
15. Avoid small gains and large losses.
Cut rapidly the losses (sell as soon as you lose a little) and let the profits run (when we win we do not sell but they put a stop sell at 20% below the current price (Ex : an action of $20  Stop selling to 16) if the stock drops too much the action will be automatically sold by the bank) while the behavior of human nature is inclined to do the opposite. The cure for self-discipline.
16. Never cancel a stop loss (stop-sale).
It was initially set at the maximum loss, we must stick to it.
17. Go in the direction of the trend. Follow the "trend following".
The market is always right.
18. Do not enter and exit the market too often.
The costs have been quick to eat the profits.
19. Do not buy just because the prices are low.
If the price are low, find the reason? There is one (box sick, she will lose money). The action can always drop to 0!
20. Before buying more, wait for the break of resistance (phase 2).
Consider that this is a new operation taken after a new signal. Phase system:
Phase 1: energy storage, a battle between buyer and seller do not buy!
Phase 2: victory of buyers, you must but and put a stop sell (or stop loss) just below the price of purchase and follow! 
Phase 3: indecision between buyers and sellers, it looks like Phase 1 ... danger!
Phase 4: Fall! Never buy at this stage! Never!   wait  Phase 1 and break up to create a phase 2!
Conclusion: Only buy in phase 2 and ell in phase 3 = insured income.
21. How to choose values ​​before building the pyramids (see 20).
Avoid making inverted pyramids. (Reverse: the more it decrease more I take = assured destruction!)
22. Treat each value separately. Gains of a value are not  the losses of another.
23. Do not change your mind without good reason.
Follow the plan with the confidence that you set. Emotional discipline is essential.
24. Do not increase your bets after a period of earnings. The market tries to take what he gave you.

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