Gann used to say: "Good health is essential to success in any profession and an active in equity and commodities trading. Keep their perfect health is as important as protecting their capital. "
• Divide your capital to be used in ten equal parts, and do not risk more than one-tenth of the capital for each transaction.
The reliability of technical analysis is not absolute, a graphic training can not be completed or generate false signals; divide the capital between multiple titles not only it reduces investment risks but also allows you to move the capital from one title to another without being "trapped" in a position of waiting for the hoped following training. • Use protection orders. They come in two types, the stop-loss and the profit-taking. The first is that which is given to the intermediary to close the position when the amount of a loss reaches a certain position. Having bought such a title at 100 €, a stop-loss of 10% will force the sale if the stock falls to 90 €. Doing so can pre-determine the maximum loss that means support and avoid to stay long with position of titles that can be demobilized at the cost of heavy losses. A profit-taking order is just the opposite: the position is closed when the profit has reached a percentage defined in advance. It is in both cases of price levels which close a position that can be varied with time, according to the trend of the market. If you have set a purchase long, for example, you can move upwards as the level of closing orders as the profit grows, thus preserving a greater profit potential. o
Do not buy just because the price is too low, or you sell because the price is too high. It should be remembered that the "commodity" in the balance is often not convenient for the buyer, you should always follow the trend. • Do not close your transactions without good reason. Use it with a stop-loss orders to protect your profits. If a title keeps the trend, bullish or bearish, but not much moves in any direction waiting to disfarvene probably he is just preparing a new movement. Close the position on a title when he mentions the trend to reverse, protect the growth of your profits.
• Do not enter or exit the market too often. Operate too unnecessarily submit our mind to stress the possible health risks and in return enrich the middlemen. Position yourself on a title and let them lead the trend, the best performances are not made in a few days. • Do not average the losses. This is one of the worst mistakes a trader can make. It means a position when you continue to purchase securities while the price is yielding. Doing so can reduce the carrying value of the investment and thus lowering the break-even point. Doing media only increases the number of securities involved in the transaction and, consequently, the potential losses. The greatest danger is to let the situation get out of hand going against the market. • Do not leave the market to impatience, and not enter therein when you are anxiously awaiting. The work of the trader is not to make a huge number of transactions, but rather to see the best opportunities for action in relation to his action. It is better to allocate a few more hours to the study of the market and its prospects that start right away with more haste dictated transactions by reasoning. Eventually it will be able to find that most of the factors that influence a title is from the investor. A special moment of understatement, a wave of emotional sales or the provision of particulars news can create a big difference in the final result of a position.
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