Stock Technical Analysis Course – What You Need to Know About Maxims

Posted on March 11, 2010

A technical analysis course will teach you that about anything can be justified with an old saying . There is always an equally plausible maxim that seems to justify actions that are diametrically opposed. No matter what the event maxims are always around to provide a description . Often traders decide to pick on that encourages their method of trading . It was Orin Thevault that said that according to sociologists, this is now known as “selective perception” . This maxim provides some comfort to the trader when he has taken a loss or a smaller profit than he should have .

Often traders that are successful scoff at maxims, that don’t have any value and that are general and that have no place in a trading plan . He thinks that trading success requires more than just than the right choice of a maxim.

“Nothing is so useless as a general maxim” .
– Thomas Babington
Lord – Macaulay – 1859

Theoretically , if any one rule or maxim was invariably correct its validity would be eliminated because it would be followed so much . Due to human nature, on a regular basis good maxims get broken . If we have a great maxim , it doesn ‘t mean very much does it ? People probably won’t pay a lot of attention to it . Everything can’t be remembered after all. Maybe Lord Macaulay had it right . There are some of those maxims out there, which can be used in commodity trading . There are some that you should remember because they are profound. You can make your own choice. Really , I’d suggest you take maxims that work for you, make your own collection and repeatedly question and test them .

MAXIMS THAT ARE ESSENTIAL

The top approach that will enable you to maximize your results is on a small scale playing a favorable game, but still providing a reasonable chance of success , is playing a game that is favorable on a scale that is large avoiding ruin with enough early profits . A game that is unfavorable can bring up profitable results if you rarely play and bet big. The road that will definitely end you up in a big disaster is constantly playing a game that is unfavorable . You can learn more about this by taking a stock technical analysis course.

A good sport dies without money .

There is no such thing as a sure thing.

Markets don’t sleep, but traders do.

If enlightenment is the mutal goal, dialog is appropriate .

A success that is accidentaly usually ends up a failure that is accidental.

There are negative and positive aspects to winning .

What the few can do, the many cannot accomplish .

Along the line of least resistance is a good place to take a position.

Sell famine / buy glut .

Buy rumors – sell news .

A bull and bear can both make money – a hog can’t .

Never buy at the bottom, and always sell too soon .

Buy what will not go down in a bear market . In a bull market, never make a buy on something that won’t go up.

Many reactions that were healthy have ended up fatal .

When market opinion leans to one side watch for a trend .

Patience is imporant . Wait for situations in which profit potentials seems unusually high .

Don’t trade often unless the plan you have requires you to often take positions.

There isn’t a maxim that someone won’t find a problem with.

Hoard half the profits you make .

It’s tougher to keep money than it is to make it.

Sure, the strong and the fast don’t always end up winning the battle, but you should bet on that.

MAXIMS FOR THE PESSIMIST

If it can go wrong, it will go wrong

No matter what the result, there’s always someone to fake one better .

Someone is always there to misinterpret your result, no matter what it is .

In any collection of data , the figure that is most obviously correct – beyond all need of correcting – is where a mistake will be .

It may be impossible to get a wrong number, but you can still find some way to do this.

Broad is the path that leadeth to destruction .

MAXIMS THAT ARE FUZZY

Let profits run and cut your lossings .

( it’s like telling somebody to stay happy and healthy . )

On down days, only buy . Sell only on up days .

Only the school of hard knocks teaches better than a stock technical analysis course.

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