A technical analysis course will help you learn that there are sayings out there that can justify most things. There’s always a maxim that is plausible that appears to justify diametrically opposed actions . No matter what the event there are maxims around to describe it . Often traders decide to pick on that encourages their method of trading . It was stated by Orin Thevault that sociologists have named this phenomenon ” selective perception ” . The most favored alibi comforts the trader when he deals with a smaller profit or even a loss .
The successful trader derides maxims as conventional wisdom , that don’t have any value and that are general and they are more for a random walk explanation rather than for a real plan for trading. He believes that success in trading requires more than maxim choice and observation .
“Nothing is so useless as a general maxim” .
– Thomas Babington
Lord – Macaulay – 1859
Supposedly, if there was a maxim or rule that was always correct it would be followed to such an extent as to eliminate its validity . Human nature is such that any valid maxims are broken with monotonous regularity . If a good maxim is had, it probably doesn’t mean a whole lot does it? People probably won’t pay a lot of attention to it . Everything can’t be remembered after all. Lord Macaulay may have been right . There are some of those maxims out there, which are applicable to good Commodity Trading . Some maxims are quite profound and should be remembered . You can make your own choice. Actually, you should come up with a collection of your own maxims that work out for you and repeatedly question and test them .
MAXIMS THAT ARE ESSENTIAL
The most effective approach to the objective of maximizing results is playing a game that is favorable on a small scale , but still providing a reasonable chance of success , is playing a favorable game on a large scale avoiding ruin with enough early profits . A basically unfavorable game can give you results that are profitable if you bet heavy and seldom play . The road that will definitely end you up in a big disaster is constantly playing a game that is unfavorable . You can learn more about this by taking a technical analysis course.
A good sport dies without money .
There is no such thing as a sure thing.
A trader sleeps – markets do not .
Dialog is okay if enlightenment is the goal of both.
A success that is accidentaly usually ends up a failure that is accidental.
Positive and wnegative aspects are manifested in winning.
The things a few can do can’t be accomplished by man.
Take positions along the line of least resistance .
Sell famine / buy glut .
Buy the rumor / sell the news .
A bull can make money. A bear can make money, but a hog never can .
Sell too soon and avoid buying at the bottom .
In a bear market but what won’t go down . In a bull market, never make a buy on something that won’t go up.
Fatality has occured to many healthy reactions.
Watch out for a trend when market opinion seems one sided .
There is wisdom in patience . Wait for the times when it seems you can get unusually high profit .
Unless you have to take frequent positions, trade infrequently .
There isn’t a maxim that someone won’t find a problem with.
Use a safe deposit box to keep half of your profits.
It’s easier to make money than it is to keep it .
Sure, the strong and the fast don’t always end up winning the battle, but you should bet on that.
PESSIMIST MAXIMS
If anything can go wrong, it will
No matter your results, someone else will make up a better fake one .
No matter what the result, there’s always someone eager to misinterpret it .
In any collection of data , the figure that looks correct obviously – is usually the mistake .
Even if it is impossible to derive a wrong number, still a way will be found to do it .
The path that leads to failure is broad .
MAXIMS ON THE FUZZY SIDE
Cut you’re losses. Let you’re profits run .
( it’s like telling somebody to stay happy and healthy . )
Buy only on down days . On up days you should only sell .
Only the school of hard knocks teaches better than a technical analysis course.
