Monday, March 9, 2009

Rules for effective enforcement of trade


Execution may be the weakest link in the whole a good market strategy. In the end, it is much easier to find a good market-based instruments than sell them at a profit. So, how we should enter the market just at the right time and capture the great movements that we see on their schedule?

Here are the rules for effective trade execution. Try to follow them the next time you are ready to enter the market.

1. Look for conditions to enter the market, or stay away from the market until they occur. Poor performance is destroying the good deal.
2. Look for the market before selling. Look for evidence to support your opinion. Time, the crowd, and the trend should support the spread, a breakthrough or reject what you expect.
3. Choose to carry out or stand aside. Stay away from the market - this is also the position. All features have a risk, and even excellent initial conditions can lead to very bad transactions.
4. Filter the transactions via your personal plan. Avoid the transaction if it exceeds the limit of your risk.
5. Stay out of the game and wait until it will be possible. There is a perfect moment in which you try to sell.
6. Decide how long you intend to stay in the market for the execution of the transaction. Do not do intra-day trade, if you want to invest and, conversely, do not invest, trading on the movement.
7. Open positions in the direction of market movement, rather than against it. More than a pleasure to ride on the waves, than to be eat sharks.
8. Avoid opening the market. At this point you are most vulnerable.
9. Stand apart from the crowd. Its emotions often signal about the opportunities in the opposite direction. Profit is rarely follows the herd.
10. Keep an open view, and let the market. show yourself before you become to sell.
11. Hands off the keyboard until you are ready to act. Do not trust your fingers as they move faster than your brain.
12. Stay on the sidelines, when uncertainty reigns and the crowd are confused.
13. Deal first with the transfer of positions to another day, before you begin to engage in intra-day trade. Longer periods of retention of the position reduces the risk of poor performance.
14. Ponizte size of their positions as you do not have the analysis report. Systematic work on each analysis and never hurry.
15. Stick to a strategy of trade on the volatility of the limited range of markets and trading strategies for the pulse to market trend.
16. An excellent entry in the bad situation will bring more money than a bad entry in good condition.
17. Go to the crowd at the rollback and for her breakthrough. Be prepared to move against the crowd, when conditions are favorable for a turn.
18. Find the turning point where the crowd loses control, refuses to go further and show a surplus of. Then fulfill the trade immediately before they begin to act.
19. Use market orders to enter quickly when you can see the market. Place a limit-order and when you do not have the ability to monitor the market.
20. Focuses on performance rather than on technology. Quick terminals make a good trader is better, but they will not lose.

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