Objectivity ....

Perhaps one of the most challenging skills in becoming a successful trader is Maintaining Objectivity in trades. While there are a variety of factors which contribute to you losing objectivity in a given situation, there is a clear and defined path you can follow to re-gaining it. Look Backwards.

More times than not, losing objectivity occurs when you micro-manage a situation. It may be in the form of watching the tape or over-thinking a position but in essence, you lose sight of the MACRO picture or WHY you were in the trade in the first place. As a result, you make poor decisions which generate poor results.

So ask you : "Why am I in this trade?"

Money management

Money management in trading involves specialized techniques combined with your own personal judgment. Failure to adhere to a sound money management program can leave you subject to a deadly “Risk-Of-Ruin” exposure and most probable equity bust.

With this in mind, here are a few essential money management techniques that can make a big difference for your bottom line:

1.Always Use Stops
2.Use A Proven And Tested Methodology For Calculating Stops Rather Than An Arbitrary Figure
3.Use A Proven And Tested Trading System
4.Pay Close Attention To Your “Trade Size” For Each Trade And Be Sure That You Take Into Consideration The “2% Risk Rules”
5.Never Exceed A 2% Risk (Of Your Trading Account Size) On Any Given Trade
6.Never Trade More Than A 2% Risk (Of Your Trading Account Size) In Any Given Sector
7.Never Exceed A 6% Risk (Of Your Trading Account Size) Over-All At Any Given Time
8.Always Trade With “Risk Capital” (Money You Can Afford To Lose)
9.Never Trade With Borrowed Money
10. Use “Scaling” Out Of Positions To Boost Your Percentages
11. In Most Cases, Be Sure Your Trading Account Size Is Not Greater Than 10% Of Your Total Net Worth
12. Develop “The Trader’s Mindset”

Diamonds ?

Do you own these stocks ? No roller coaster these stocks. Diamonds ?

1. CARDO
2. CLOETTA FAZER
3. WALLENSTAM
4. LJUNGBERG
5. BEIJER
6. PROTECTDATA
7. MILLICOM
8. ORCSOFTWARE

Ready for a ericsson ride ?

I'm ready for an ericsson ride now.
New floor on 28 SEK. Just wait and see and keep your stop-loss.

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You need " Self-discipline" when you trade

Self-discipline is the ability to get yourself to take action regardless of your emotional state.
Trading is easy if you have a good trading system with rules and very strong self-discipline to follow the precise signals generated by the rules you wrote.

Locus of Control ?

Do you control your investments ?
Some people believe that they hold the power to control the outcome of their actions. Other people feel that the outcome of their actions is determined by external factors like newspapers or friends.

It is important to know when to buy, but know when to sell is more important !!