Successful
traders are those who not only know the market mechanisms but also have an
action plan and follow religiously. Since we operate in the market is basically
a process of working with and increase your odds chances, anyone who
participates in the market must make a conscious effort to establish some kind
of structure that offers allows to manage their emotions. If you acknowledge
that you have a issue before you open a position or commitments for long run
you will be better placed to take advantage of debacles potential.



Rules
herein described are not the only, but are usually considered as the most
important. It is assumed that you, this stage, already have some rudimentary
knowledge of the functioning of market and also a method for making operational
decisions. Its method can be of any type, technical fundamental, etc.. The vehicle
is not important provided it has been tested, and feel comfortable with him.
All religions try to take us essentially the same place (ie, the discovery of
truth), but His ways are different. So also are the methods and markets. All
approaches have the profit goal, but each individual has to choose its own
path. It's not worth using a method practiced by a trader or on a prominent publication
on the market (newsletter, magazine, etc.). if you do not feel totally
comfortable with it, because when things becomes difficult, as indeed are, the
more likely that the leave. Select a methodology is usually not difficult, it
is run. Managing your emotions is precisely what they are for the methodologies.
Let them!



1. When
in Doubt, Stay Out



When
operating the markets, it is important to have a certain level of confidence in
what you are doing. Takes a lot of confidence not to give operate too much
importance and which is not welcome. On the other hand, if you open a position
with little or no enthusiasm you're putting yourself in a position of an idiot
when something bad happens. If there is any doubt in your mind about starting
an operation, then you should not start it, because not has the emotional
fortitude to stay there when things start to go wrong. For example, if in
doubt, tend to focus on any negative fact unexpected. Insofar which prices
fall, you will be more and more discouraged. Consequently, when reaching a
support or prices an area of ​​purchase, you will be more willing to sell than buy.
Alternatively, you can enter a position based on solid research and confident,
but not in a too excited. Later, new evidence that will leave less optimistic
than before. In the short term, some doubts about the logical starting to enter
the operation start to tingle in your mind. Whether the price is above or below
the original. The fact important is that now begins to doubt his original
logic. Beneath such circumstances there is only one logical path to follow -
get out. You no longer has the strength that came from strong conviction. This
means that you probably will fall off at the first sign of trouble. It is
important to remember that the main reason for being in the market is to make
money.



 



2. Never
Operate or Invest Based on Hope



She posits
an operational rule, since many of us cling to losing positions and even after
the rational logic to get it started already disappeared long ago. The only reason
not to sell is hope, and the market usually hope to reward losses. When in this
situation, selling readily.



3. Do
not Run Too



Many
traders feel the need to operate all the time. The reasons vary. Some want
excitement. Others, like a crutch for support their hopes. If you're out of the
market, cannot wait back, because he feels that the profit is flowing through
your fingers.  When everything in your
life results in disappointment, the operation or investment serves as something
on which to put your hopes. In these situations, the trader or investor is
using the market to compensate for their frustrations. For others, the
motivation constantly in the market is nothing less than pure Greed.



4.
After a Successful and Profitable Campaign, Take a few



Vacations
Operations Many traders believe that a profit is relatively easy; part is
difficult to keep them. I'm sure that if most traders will show a graph of its
performance, it looks like a oscillator, because they fail to recognize when
your luck and skill peaked. In short, they do not know when to leave the table.



5. Analyze
your mistakes constantly



When we
succeed, we tend to think that this process came from hard work or good
judgment. Rarely attach to chance or luck of being in the right place at the
right time. On the other hand, when things go against us, blame the lack of luck
or some other convenient scapegoat. Of course, we should first be questioning
our own judgment because it is the most likely source of any error that may
have been committed. It made a mistake only when we begin to take responsibility
for our own actions and learn from these mistakes. You can read books on the
psychology of the markets, but only when you feel the pain of loss of money and
assign it to your error you will be prepared to try not to repeat it again. This
process must be continuous criticism. After a brief period, the chances are
that you will rely on this false sense Safety, in that the profits begin to
return. In this type of situation, most people return to their former process. The
greatest benefit of analyzing their transgressions is that their failures appear
and are often your best teacher, that brings you back to reality that if you
had followed the rules religiously, would not be in this predicament. That way
more natural than follow him the next time? Many of the errors appear disabilities
Emotional - fear of being wrong or to feel a fool in time to face your broker
or other person with the injury. This is also true for the professional
managers who do not just have to work with the vagaries of the market and their
own emotions and those of customers as well.



6. Do
not Try To Capture Every Turn of the Market



In our
natural desire for perfectionists market is quite understandably feel the need
to capture every turn. Unfortunately, the task is unattainable. If we find
ourselves trying to guess every swing and twist in the price movement, not only
we are led to frustration, but also totally lose any sense of perspective.



7. Never Get into operation without first
establish the Value Risk / Reward



You cannot
fix a specific mathematical relationship of profits prejudice against the
expected maximum acceptable in all cases. The decision should be made
considering the proportion of capital exposed to risk in a particular operation
or investment. Other factor relates to the personal characteristics of each
investor. To risk-averse investors should not seek high investment risk
associated with high gains, and vice versa. Risk is always relative. The which
is a threat of financial risk for some can be earnings opportunity for others.
Generally speaking, you should use a good dose of common sense, making sure
that the ratio is at least 3-1.



8. Never
Operate and Invest More Than You Can Lose Reasonably



At any
moment they put their capital at risk you do not can afford to lose, because
you will be at the mercy of the market. Your stress level is too high, and you
will lose all objectivity. Decisions will be emotional because it will focus on
monetary gains and painful psychological consequences of a injury and not based
on facts such as, in reality they are.



9. Do
not Fight the Trend



There is a
maxim that says: "A rope up any raises ship. " In market parlance
means that it is better to be operating in the direction of the market if the
market rises, bringing as effect the growth of all long positions. Being sold a
bull market, however, involves a considerable risk, for definition, unless you
are too quick to realize profits at the right time, a loss will surely be
imminent. The opposite is true for a falling market, when reactions are
unpredictable and occasionally dark. If you study the vast majority of the
results of a large part of the system operation will see that, inevitably, the
results come from positions which are mounted in the opposite direction of the
main trend. Obviously, you do not always have a firm opinion about the primary
direction, but when you have it, is much more sensitive to not operate against
it.

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