Thursday, October 23, 2008

Pls read this daily before trading: HBJ Capital’s 5 golden rules for profitable trading.

Dear Readers (Trading Community),

Pls read this daily before trading: HBJ Capital’s 5 golden rules for profitable trading.

[Never “Predict” or “Anticipate” the market, try to “React” to what market is telling by its behavior]
  • Rule #1: Making money in the markets has almost nothing to do with how often you win but everything to do with how you manage your risk.
  • Rule #2: Never risk more than 2% of your money on any short-term investing: day-trading and position trading. Always remember - Stock Market is the world’s biggest gold mine only if you play with the rules not emotions.
  • Rule #3: Always use protective stops. Limit your risk to 2% in future trade and 20% in Option trade. The human side of every person is the greatest enemy of the average investor or speculator.
  • Rule #4: How you exit a trade is as important, if not more important, than how you enter it. Look at speculation as a business not gamble, expect rational return and achieves it.
  • Rule #5: Ignore the News. Always keep in mind: News does NOT dictate the major trends in any market or security. To the contrary, news flows FROM the trends! Do not listen to people, the pundits, and the reporters, who are trying to interpret the news and predict what will happen. Learn how to read the chart/movement of stock – the truth is in the chart – listen to it or listen to HBJ Capital’s Views.

The stock market always moves ahead of the world event/news/results; not operating in the present or reflecting the future; it is operating on what is yet to be the future. The headlines in the newspapers are for the suckers. A good speculator has to get behind the news & see what was really going on.

Enjoy the trade!!! Create wealth by investing your trading gains in10in3 stocks recommended by HBJ Capital.

Regards,
HBJ Capital Team

Note: Trading can be disastrous if trading discipline not followed & emotions are not kept under control. Any suggestion or reco by HBJ Team must not be taken for a granted; one must do their due diligence before acting on it. We are not responsible for any gains/losses caused due to trading.

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