theirstaxblog.com

A technical analysis course will teach you that there are sayings out there that can justify most things. A plausible maxim is always there that seems to justify actions that are diametrically opposed. It doesn't matter what the event happens to be maxims are always around to provide a description . Many traders choose a maxim that will support their actions. It was stated by Orin Thevault that according to sociologists, this is now known as "selective perception" . The trader is given some comfort with this alibi when he ends up having a loss or gets a profit that is smaller than he should have had.

Often traders that are successful scoff at maxims, that are general and without value and they are more for a random walk explanation rather than for a real plan for trading. He knows that success as a trader includes more than maxim choice and observation .

"Nothing is so useless as a general maxim" .
– Thomas Babington
Lord – Macaulay – 1859

In theory , if there was a maxim or rule that was always correct it would be so used that its validity would be eliminated. Due to human nature, on a regular basis good maxims get broken . So, if we do have a good maxim , it doesn 't mean very much does it ? More than likley it won't really be paid attention to. People can't remember everything . Lord Macaulay may have been right . But there are a series of so-called maxims , which are applicable to good commodity trading . There are some that you should remember because they are profound. You can make your own choice. In fact , I'd suggest you take maxims that work for you, make your own collection and test and question them again and again .

ESSENTIAL MAXIMS TO KEEP IN MIND

The top approach that will enable you to maximize your results is playing a game that is favorable on a small scale , but still providing a reasonable chance of success , is on a large scale playing a game that is favorable with enough profits coming early in the game to avoid ruin . A basically unfavorable game may yield profitable results if one plays seldom and bets heavily . The road that will definitely end you up in a big disaster is playing an unfavorable game continuously . This can be learned by taking a online option trading.

A good sport dies without money .

There is no such thing as a sure thing.

Markets don't sleep, but traders do.

If enlightenment is the mutal goal, dialog is appropriate .

Accidental successes usually turn into accidental failures .

There are negative and positive aspects to winning .

The many can't accomplish what the few can do .

Along the line of least resistance is a good place to take a position.

Sell famine / buy glut .

Buy the rumor / sell the news .

Bears and bulls can make money but hogs cannot .

Sell too soon and avoid buying at the bottom .

Purchase what isn't going to fall in a bear market. Never buy something that won't go up in a bull market .

Many reactions that were healthy have ended up fatal .

When market opinion leans to one side watch for a trend .

Patience is very wise. Wait for the times when it seems you can get unusually high profit .

Trade infrequently unless you're trading plan reasonably requires you to take positions often .

There isn't a maxim that someone won't find a problem with.

Put half your profits in a safety deposit box .

Money is easier to make than it is to keep .

The race doesn't always go to the swift or the battle to the strong, but that's the way to bet .

PESSIMISTIC MAXIMS

Something that can go wrong will

No matter what the result, there's always someone to fake one better .

It doesn't matter the results, someone will work to misinterpret it .

When you collect data , that figure that seems to be totally correct – is where a mistake will be .

It may be impossible to get a wrong number, but you can still find some way to do this.

Broad is the path that leadeth to destruction .

FUZZY MAXIMS

Let profits run and cut your lossings .

( this is like encouraging someone to be happy and stay healthy. )

On down days, only buy . Only sell on days that are up.

Only dealing with hard knocks will give you more teaching than a online option trading.

Tags: online commodity trading, online futures trading, online option trading, option trade