And will bring out and Test Your Weakest Emotions (Financially and Psychologically ) So
that is the reason we should have a good
trading system and Money management rules for decision making . To develop a
trading system You should study the charts over a period of at least 20 to 30
years of that particular Stock or commodity that will give you the confidence
to act and make profits when you can see and know for
yourself why stocks should go Up or down – If you do this you will prepare
yourself to act independently without anyone’s advice – because you will know
from your study where the market is headed and thus you will act with confidence
and not with the GUESS Work
Money
Management is one of the most important aspects of
any
trading system and the First defense from loss –And of any Trading system the
main weapon to protect you from Disaster losses is STOP LOSS and placing a stop
is an art – and explaining it is beyond the scope this article - For Money Management You should Develop trading
system which is tested at least on 20 years of chart – If you don’t have any
trading system or Money management that means you are weak in both the areas and
will never have confidence in your Entry price , Exit Price cause you don’t have
a plan to execute and thus you will act on your Human emotions (So that is the reason Trading is
against the human nature and the Market is design to teach you to fail ) So its very crucial to have money
management and trading plan into place Cause it will Remove the Subjectivity of
the human condition .
At
last- If your not Ready to dedicate your time and energy in studying the
Historical charts - then please don’t trade with your Impulsive emotions and
Guess Work .
Have
a safe Trading with ( logical Stop Loss) .
