Systematic Trading

1 Buy the stocks that are going up Stocks that are rising tend to keep rising while others stocks in a down trend continue to fall. So as a trader you have to chose the stock and trade along with the trend.
2 Cut losses let profits run
Most of the traders always sell their good trading positions and hold their bad positions. If you buy a stock and it starts falling heavily get out of the trade immediately.

At the same time if the stock going up wait for some time.

3 Never take a tip
Most of the tips come to nothing. so never depend on a tip

4 Never trade against the trend
Going for a short term trade against the direction of the longer term trend is very dangerous. If you are going to trade in the long position but the long term direction of the market is down side avoid the trade.

5 Buy High Sell Higher
It is always impossible to buy at lows and sell at highs. So better to buy in highs and sell on higher.

6 When in doubt stay out

Systematic trading is nothing but discipline. During the trading if you have a doubt in the direction of the market it is better to avoid trading. When you feel good about the direction of the market, start trade according to the market.

7 Start with less
The best way to start trading is to trade smaller than you would normally. If you are going to trade 100 shares eventually trade 30 shares for the first 30 days of the systematic trading, after the big success you can increase your trading capital step by step.

8 Accept your losses
Never expect all your trades to be successful; even the best investors are not right all the time. Sometimes it is necessary to sell the losers, so accept loss at that time.

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