Trader's Textbook

For profitable work on the financial markets a trader should follow the principles specified below.

• Forecast which way a market is expected to trend (Analysis). There is a wide range of methods of analysis: Fundamental Analysis, Technical Analysis, Elliott Wave Analysis, Candlesticks, Tomas Demark Theory, Chaos Theory or any other. With the help of these methods a trader can forecast prices behaviour in the future.
• Choose a right moment to open or close a position (Trading Strategy). Trend identification is not enough for profitable trading. It is essential to choose the right moment to enter the market. E.g. if having identified the bullish trend you enter the market before a retreat starts, this retreat may cancel your stop order. Your position is closed. You lose money and the market reverses and goes in the direction you’ve identified.
• Follow the rules of money management (Money Management). It will decrease the risks of your financial operations. Your money management system will allow you to make deals only with the minimal risk.
• Do not allow your emotions to operate your account (Psychological Peculiarities of Trading). When making a decision emotions should be kept under control. Emotions are the first enemies of a trader.