| Some commodity Stock Trading Application rules are | | | | quite right, and you won`t be trading for the wrong |
| made to be broken, but when you`re trading, there | | | | reasons. |
| are some rules are meant to be followed. Here some | | | | Commodity Stock Trading Application No. 5 ~ Never |
| of the Stock Trading Application rules that I consider | | | | Act on a Tip |
| the most important principles of trading. I suggest | | | | Who hasn`t reacted to a tip they heard from |
| that you make a copy of them and place them in | | | | somebody about a stock that is apparently going to |
| your trading diary or tape them to your desk, so | | | | the moon and never coming back? Never act on a |
| that you`ll always remember to follow them. | | | | tip; tips are rarely good. The worst part of tips is |
| Commodity Stock Trading Application No. 1 ~ Cut | | | | that you will probably stick with the trade even when |
| Your Losses | | | | the security starts to head against you. You will be |
| Never let your losses get out of hand. It is one of | | | | more inclined to break the commodity Stock Trading |
| the most important things that you can do to ensure | | | | Application rules and not cut your loss because of the |
| you are successful. Losses can devastate you | | | | 'reliable` information you have heard about the |
| emotionally and will diminish your trading capital, | | | | stock`s future. Instead of trading on tips, have |
| violating your primary aim in trading - to preserve | | | | confidence in your own plan. |
| your capital. If you could get successful traders to | | | | Commodity Stock Trading Application No. 6 ~ Always |
| credit their success to one thing, many would select | | | | Trade Liquid Stocks |
| this rule. | | | | It is a horrible feeling of helplessness to be stuck |
| Commodity Stock Trading Application No. 2 ~ Let | | | | with a stock that you need to exit from because |
| Your Profits Run | | | | there aren`t enough buyers in the market. Liquidity is |
| Hand in hand with the first rule is the second ~ let | | | | the ability to trade in a security without adversely |
| your profits run. Your trading plan will probably | | | | affecting its market price. Always demand liquidity in |
| produce profitable trades less than half of the time. | | | | your securities before you consider trading them, and |
| Therefore, you need to make sure that when you | | | | you`ll never be stuck with a stock. |
| do achieve a profit, you get the most out of the | | | | Commodity Stock Trading Application No. 7 ~ Keep |
| move in the stock. Some up trends take time to | | | | Positions Small |
| develop; and you must wait until you see the high in | | | | When trading, you need to understand and manage |
| the stock achieved and then the reverse in direction | | | | risk to achieve long term success. If you want to |
| before you consider closing the position. Until you see | | | | completely avoid risk, then don`t commit any money |
| the reverse, you won`t know if the stock is going to | | | | to any financial market. If you are prepared to take |
| go any higher. Remember, your few profits must | | | | some risk, then managing and controlling that risk will |
| outweigh many losses. | | | | be crucial. One of the best ways to do this is to |
| Commodity Stock Trading Application No. 3 ~ Follow | | | | ensure you have, and use, a good position sizing |
| the Trend | | | | model. This model will ensure that you don`t commit |
| In trading, trends are the only friends you have. | | | | too much of your trading capital to a single position, |
| Always trade with the trend! Never attempt to | | | | allowing you to spread your risk across several |
| identify the bottom in the stock or time your entry | | | | positions. |
| using that approach. If you do, you can be run over | | | | Commodity Stock Trading Application No. 8 ~ Don`t |
| as the stock continues on its way down. There is | | | | Buy Something Because it Looks Cheap |
| often great force and momentum at work when a | | | | If a stock is cheap, there is probably a very good |
| stock is trending in either direction, particularly when | | | | reason for it. Only consider stocks that are trending |
| the trend is down. Don`t try to fight it. Why buy | | | | up. There is no such thing as a stock that might start |
| something that is heading in the wrong direction on | | | | to trend up any day. Even if a stock looks cheap, |
| the hope that it will turn around and head back up | | | | who is to say that it will not get cheaper? It may |
| past your entry level? | | | | never increase in price again. |
| Commodity Stock Trading Application No. 4 ~ Don`t | | | | With these commodity Stock Trading Application |
| Overtrade | | | | rules, a solid trading system, and good money |
| Don`t trade for the sake of trading. Never force the | | | | management, you can become a successful trader. |
| action. If you are not comfortable with any of your | | | | Remember these commodity Stock Trading |
| potential trades then don`t open a position. It is a | | | | Application rules and use them. Particularly when you |
| mature decision to do this when conditions aren`t | | | | don`t want too. |