Recommended principles for safe and profitable trading

Principles for profitable and safe trading follow the ideas of Risk Management. Inhere, we can only name the main topics from the Principles, which you should keep in mind.7

Principles for profitable and safe trading shortly:

1. Knowledge of online trading principles. Learn how to understand the principles of technology of speculations and Stock Exchange functioning (CFDs & Forex). Understand the concept of Margin, leverage, trading instructions. Learn how to control the software. Understand the difference between Demo and Live trading.
2. Knowledge of markets and assets. Learn how to work with assets for your speculations, which are liquid, informationaly available and which can be traded for most of the real-time. Understand the financial efficiency of speculations, time-frames for trading and also terms such as: liquidity, slippage, spread and many more :-).
3. Risk Management. Learn how to have the risks of your own speculations under control. Understand the terms risk distance, optimal or maximal risk in percentage or in money, always due to the real amount of disposable capital account. To effectively manage your open Stock Exchange positions, it is necessary to work with discipline and with the lowest possible risk (small number of contract, Lots). The goal is not to make money fast, but safely and steadily.
4. Situational analysis and trade planning. Learn or understand the basic principles of situational analysis as a mix of fundamental, technical and experiential analysis. Keep in mind that 20% of the simplest methods and approaches bring 80% of results. Use your situational analysis not only to enter the position but also for its following management. Well done situational analysis is the base for good trade planning and long-term Investment management.
5. Profitable trading in line with market sentiment. The base for successful speculations on the Stock Exchange is understanding of price trends -; market sentiment. It is necessary to understand the current price direction (uptrend & downtrend). To indentify zones of market turnover, understand the terms Synergy, Leverage and Correlation. For short term speculations, we prefer the knowledge of short-term trends and market situations. In the case of loss developement, you need to understand the long-term sentiment (middle-term). These analutical procedures are provided in the Online Trading Manual and were discussed at the workshops of Ardeus Online company.
6. Management of trading position. It is a controlled process of decision-making procedures and actions in the situation, where we have open trading position on the Stock Exchange. In the case of profitable development we focus on securing and maximization of the profit. In the case of unfavorable development (usually a temporary loss) we change our decision-making procedures and focus to have potentional losses (risks) under control. We deal with the management of loss position usually when the price is behind the MSL in all three mentioned vriants.
7. Decision-making processes. Issues such as individual risk perception by every investor and his ability to work with risks and have them under control will be reflected into the trading result. Key issue is the issue of safe trading & overtrading. Personal profile and investor"s character, the influence of health and ability to manage emotions (mainly fear & greed), these will also reflect into decesion-making processes. Trading results are always the results of decision-making processes of each investor and his abilities. For trading results of individual investors, no one take any responsibility (broker, Stock Exchange, educational or onformational company...).
8. Money Management. Use the concept of smart Money management, rich people don"t make big bets. Sucessful investors risk little, they have adequate capital account. Smart Money management = money and profits grow, trading account is in uptrend. Unsuccessful investor risk too much and too ofter with inadequate (bad equipped) accounts. Wrong Money Management = account is in downtrend. Understand the Stock Exchange gradually, don"t push on result and give yourself a chance for long-term investment activities.
9. Management of trader"s personality. Profits of investments are created in head, not on the Stock Exchange. WinSignals are only the method and tool, though successful one. It is necessary to add also thinking. Trading on Stock Exchange is fast, dynamic and aggressive. It demands discipline, patience, respecting the procedures and mainly emotional stability. Emotional stability is often a result of thinking but mainly a personal condition of each individual. Besides the Stock Exchange make sure to keep yourself in emotionally stable condition, good health and relaxation. You need all those on the Stock Exchange.
10. Profitable and safe trading requires knowledge of issues mentioned under the points 1 to 9. Understand the fact that each position on the Stock Exchange can be profitable and it is speculator"s duty to secure this profit and withdraw it. Understand the fact that vast majority of positions on the Stock Exchange can be unprofitable due to the sentiment and Stock Exchange cycles. It is a duty of smart speculator to have the situation under control. Make deliberate decisions. As a bonus we add a list of the most important Principles for profitable and safe trading.

What does it mean to have a situation within speculations under control?

Within the profitable development of open trading position, it is necessary to mentally watch, or physically secure reached profitable levels. To reach the real Profit Target, it is necessary to have real expectations. Never leave the profitable development situations to slip into unprofitable levels. Especially not behind the set Stoploss levels, whether physical or mental. Price development of all assets behaves cyclically. It is necessary to secure and take your profits. That is the privilege of professionals.

Within the unprofitable development of open trading position it is necessary to have a current price development of loss position under control. It is necessary to undestand the fact, that price development of all assets behaves cyclically. Also to take into account the existence of Stock Exchange cycles as your potential advantage and manage open position with the vision of minimal loss because that is in most cases only temporary. Take a reasonable loss from market, if it is really necessary, or close the majority of temporary losses in profit. That is the privilege of professionals. To control your risks and temporary losses, it is necessary to trade with adequate small number of contracts, Lots, according to the capital adequacy of disposable account. Then you give yourself an opportunity to close 90-95% of all Stock Exchange speculations in profit. It is certainly wise to have your risks under control.