I was going through some trading notes I made over the years and thought it would be helpful to share a few of the important ones. These principles are sound, and I have used them to profit for many years. They are in no particular order.
A great way to profit is by recognizing new trends in the economy and acting upon these trends. An example would be interest rates. Eventually, interest rates will be rising. A couple ways to take advantage of rising interest rates would be, to short the T-Bills, and short the Eurodollar. Both tend to go down as interest rates go up. Do your own research and analysis before taking a position in the market.
It is important to wait for historically proven chart patterns to emerge from the market. This will give you an immediate edge if implemented properly. This means knowing exactly when to take a position in the market, and where to take profits. It also means to only take a small loss, if the market goes against you.
Patience is the number one essential quality for trading success. There is nothing more vital, than to wait for only the very best trading opportunities. This means having as many factors in your favor as possible before taking a position in the market. The odds are now strongly in your favor.
You do not need to be right on every trade. If you are right on half your trades, keep your losses small, and let your profits run, you will make a fortune. Concentrate on the trading process, not the results. If you implement a proper trading plan, the results will take care of themselves.
Source : azinearticles
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