Lightyear FX: Financial Analyst, Financial Media Personality, Amateur Research Trading Technical Analysis. Stay on top of the latest cutting-edge technology and share your deepest industry insights. The following is from Just2Trade.
Secotta's 9 Stock Selection Rules:
1. The market overdrafts news and reacts in advance, which greatly reduces the effectiveness of the news.
2. For trading, the motivation to earn client commissions has a negative effect.
3. The trading system does not need to be replaced. Traders can optimize and develop the originally applicable trading system.
4. There are veteran traders, there are bold, ignorant traders, there is no boldness.
5. I will add my own ideas and operations to the trading system, so that the trading system will be more in tune, more relevant, more personalized.
6. The fundamental information that traders see is generally useless. The market has reacted to information in advance, and the utility of information has been greatly reduced.
7. I'm basically a trend trader. For me, the most important things in trading are sorted from largest to smallest in order of importance: (1) the long-term trend, (2) the price pattern on the current technical chart; and (3) the good price to open the position.
8. If I decide to go long, I will adopt a chase strategy, that is, I will not wait for the price to retrace and then enter the market, and I will open a position at a higher price than now. I try to enter the market when the market is at its most momentum to rise or fall, to reduce the risks I may face... It is illogical to be bullish without going long, and to be bullish but not to have a long position.
9. When the market becomes crazy, I will understand the profit or stop loss before it has fallen below the stop loss level. This kind of first exit is no better than falling below the stop loss point and then leaving the market, but leaving the market first can make me not have to be frightened and keep calm.
Abel's 10 rules for stock selection:
1. Develop a risk management strategy so as to reduce the impact of adverse market conditions.
2. Are you suitable for spread trading to reduce risk?
3. The initial loss is often the smallest loss.
4. Step-by-step trading: one bean at a time.
5. Unless you are able to make money, you are not a good trader.
6. There must be considerable self-discipline to be able to temporarily stop trading, which is often the most favorable decision for you.
7. Playing – Is it too painful to stay on the field?
8. You don't have to be more market-savvy than you, and don't let self-esteem get in the way of admitting losses early.
9. Look for successful traders and imitate them.
10. Don't be tempted by the market and mistakenly think that trading is simple.
Rogers II's 7 Rules for Stock Selection:
1. If you buy because the goods have real value, even if the timing of the purchase is right, you will not suffer significant losses.
2. Market trends often show a long period of sluggishness. To avoid trapping money in a backwater market, you should wait for catalysts to change the market.2
3. This principle is easy to say, but it is quite difficult to do. Rogers' method is to wait for the market to reach madness, analyze whether the market has risen too high, and let go short after the fundamentals are confirmed, making sure that his views are correct. Then stick to your own bearish position, the most difficult of the above steps are the last two.
4. Be patient and wait for a trading opportunity that is completely beneficial to you. Never trade for the sake of trading, be patient until there is a highly profitable trading opportunity, and then invest your money.
5. Don't limit yourself and fix yourself on a market or a certain trading pattern. Many traders often say, "I never let go short." "But these traders will never have more profit margins than those who are willing to go long and short.
6. In other words, you have to have your own opinions. Keep this principle in mind, so you won't blindly follow the Dow Jones Industrial Stock Price Index from 1,000 to 2,600 and the public thinks that stocks in the market are in short supply.
7. If you find that the original split is wrong, and the market trend is not good for you, paraphrase Rogers: "The sooner you admit the loss, the smaller the loss." But if you believe your analysis and predictions are correct, you should stick to your parts. However, this principle only applies to traders with sophisticated analytical skills and a full understanding of the risks they are taking.