How to trade successfully in stock market

                                               

Golden rules for traders

Just choose the good positions and  avoid the bad ones. Poor trade selection takes a heavy toll as it bleeds your confidence and wallet. You face many cross roads during each market day. Without a system of discipline   for your decision making , impulse and emotion will undermine skills as you chase the wrong stocks at the worst times.

 

Many shorts term players view trading as  a form of gambling – Without planning and discipline  they throw money at the market. The occasional big score reinforces this easy money attitude but sets them up for ultimate failure. Without defensive rules insiders easily feed off these losers and send them off to other hobbies.

Technical analysis  teaches to excecute positions based  on numbers, time and volume. . The forces traders to distance themselves from reckless gambling behaviour . Through detached execution and solid risk management, short  term trading finally works.

 

Markets echo similar patterns over and over again-  The science of trend allows you to build systematic  rules  to play these repeating formation and avoid the chase.

1.    

Forget the news remember the chart- you,re not smart enough to know news will affect        price. The chart already knows the news coming.

2.    

Buy at support and sell at resistance- Everyone sees  the same thing and they re all just waiting to jump in the pool.

3.   

Short rallies not selloffs- When markets drop shorts finally turn  a profit and get ready to cover

4.  

  Don’t chase momentum if you cant find the exit- Assume the market  will reverse the minute you get in. If it’s a long way to the door . you’re in big trouble.

5.   

Trends test point or last support/ resistance- enter here even if it hurts.

6.   

Trade with the tick not against it- Don’t be a hero , go with the money flow.

7.    

If you have to look, it is’nt there- Forget your college degree and trust your instincts.

8.    

If the trend is your friend in the last hour- As volume cranks up at 3;00pm don’t expect anyone  to change the channel.

9.    Avoid the open – They see you coming sucker

10. Bulls live above the 200 moving average and bears live below it- Sellers eat up rallies below this key moving average line and buyers  come to the rescue above it