Find Out More About Maxims with a Stock Technical Analysis Course - By: Charles Drummond

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 appears to justify diametrically opposed actions . No matter what the event there are maxims around to describe it . Traders often blithely choose the one that encourages only what they are doing . It was stated by Orin Thevault that "selective perception" is what sociologists have called this . This maxim provides some comfort to the trader when he has taken a loss or a smaller profit than he should have .

Maxims are used as conventional wisdom by successful traders , that are overly general and have no predictive value and that have no place in a trading plan . He knows that success as a trader includes more than the judicious choice and observation of maxims .

"Nothing is so useless as a general maxim" .
- Thomas Babington
Lord - Macaulay - 1859

Theoretically , if there was a maxim or rule that was always correct it would be followed to such an extent as to eliminate its validity . Due to human nature, on a regular basis good maxims get broken . So, if we do have a good maxim , does it really mean much ? People probably won't pay a lot of attention to it . Everything can't be remembered after all. Lord Macaulay may have been right . But there are a series of so-called maxims , which can be applied in commodity trading. Some maxims are quite profound and should be remembered . Take your pick . Really , I suggest that you make you're own collection of maxims that are good to you and test and question them again and again .

ESSENTIAL MAXIMS TO KEEP IN MIND

The most effective approach to the objective of maximizing 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 with enough profits coming early in the game to avoid ruin . A game that is unfavorable may yield profitable results if you bet heavy and seldom play . The road that will definitely end you up in a big disaster is playing an unfavorable game continuously . This can be learned by taking a stock technical analysis course.

Good sports die broke .

There is no such thing as a sure thing.

Traders sleep, markets don't .

If enlightenment is the mutal goal, dialog is appropriate .

Success by accident usually turns into failure by accident .

Positive and wnegative aspects are manifested in winning.

What the few can do, the many cannot accomplish .

Take a position where there is little resistance .

Buy glut and sell famine .

Buy the rumor / sell the news .

Bears and bulls can make money but hogs cannot .

Sell too soon and avoid buying at the bottom .

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.

Fatality has occured to many healthy reactions.

Look out for a trend where there is a one sided market opinion.

Patience is imporant . Wait for potential high profits.

Unless you have to take frequent positions, trade infrequently .

Everyone can find fault with any maxim .

Hoard half the profits you make .

Money is easier to make than it is to keep .

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

PESSIMISTIC MAXIMS

Something that can go wrong will

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 .

When you collect data , the figure that is most obviously correct - beyond all need of correcting - is usually the mistake .

There's always a way to get a wrong number, even if it's impossible .

Wide is the road that leads you to destruction.

MAXIMS ON THE FUZZY SIDE

Let profits run and cut your lossings .

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

Buy only on down days . Only sell on days that are up.

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

About the Author

Author: Charles Drummond is a Canadian trader who has written nine books about trading and has created a stock technical analysis course called “Drummond Geometry.” His biography and further information about his work can be found at the stock technical analysis course website.

Article Directory Source: http://www.articlerich.com/profile/Charles-Drummond/70394

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