Based on the analysis of all the information I know about trading, I formed my vision of the laws of the exchange. There are 50 of them in total! Let’s get to know them.
Law 1. The principle of chess operates on the stock exchange: the steps of bulls will be replaced by the steps of bears. Whoever violates this principle is severely punished.
Law 2. A big movement always returns to where it started from.
Law 3. No one likes it when the price falls for a long time: you can’t make money on it. People take their money and leave. The exchange, in order to retain customers, will always push the market up to survive – it cannot survive without your money.
Law 4. On the Moscow Exchange, everything is subject to the price of oil and the RTS index.
Law 5. The exchange is not a charitable organization, if the movement starts to cost too much, the movement unfolds.
Law 6. A strong downtrend on the daily chart means the beginning/continuation of a long falling trend.
Law 7. The market does not give grounds to guess its movement.
Law 8. The market moves from level to level.
Law 9. If the price doesn’t move, you can’t make money on the market.
Law 10. Large gaps (gaps) are of great importance.
Law 11. Growth is never infinite, because the one who invests his money will take it sooner or later.
Law 12. If a company makes a good profit every year, its shares will always grow as long as dividends are paid.
Law 13. Do not joke with dividends: if a company is greedy for paying dividends without reason, then its shares will fall in price, because everyone will get rid of them.
Law 14. If the news is full of trumpets that the minimum historical price has been reached, then start bribing, and vice versa.
Law 15. If the price looks particularly attractive to buy, put a trailing stop on the purchase order so as not to fall into the trap of shortists and vice versa.
Law 16. Let profits flow and cut off losses.
Law 17. Do not chase the movement inside the candle if you did not have time to enter at the beginning of the movement.
Law 18. Stay away from protorgovka, because its result is unknown to anyone.
Law 19. If the price drops 10 times for a number of reasons, buy.
Law 20. Never make transactions with the entire amount of the account. Get into the habit of using no more than a quarter of your account in a transaction.
Law 21. The larger the account, the less risk you can afford, and vice versa.
Law 22. Don’t chase the idea all the way. The main thing is to take at least something.
Law 23. Always use stops in conjunction with take profit trailing orders.
Law 24. Split the amount of the transaction and make applications with a ladder. Move the stop after the price.
Law 25. The exchange always uses a monotonous frequency of price pushing. Track the hourly timeframe to find the best entry periods.
Law 26. Make any bid always believing that the market can immediately go against you. Select the desired stop loss level.
Law 27. Avoid the temptation to increase the amount of transactions all the time if the profit on the account is growing. Limit the size of the transaction to a certain constant value (the working amount), and withdraw all the profits from the account. This simple rule will increase your wealth.
Law 28. To exclude brokerage tricks, duplicate the stop loss on the MICEX.
Law 29. Bribe the currency when its exchange rate is relatively non-volatile.
Law 30. Cultivate patience and enter only at the most reliable moments. Even if it will be only 1 transaction in 2 weeks or a month.
Law 31. More leverage – shorter stop loss.
Law 32. If you came to the exchange to earn money, treat this occupation as a job. If for you the exchange is akin to a casino where you can have fun, then you will get a casino and lose all the money.
Law 33. A stop loss of 0.2% still makes sense.
Law 34. The market always gives a second chance.
Law 35. The exchange manages the price, because it is the exchange that has all the information about buyers, sellers and their transactions.
Law 36. There is no fair price. There is the dictatorship of the exchange and its daily plan to withdraw money from the population.
Law 37. An exchange is a commercial enterprise created to withdraw money from customers. Remember this and always put a stop loss.
Law 38. A falling price reduces trust, and buyers leave, if the price rises, trust grows and there are plenty of buyers.
Law 39. The news does not affect the price. The price is controlled by the exchange.
Law 40. If the market is a closed system, then the price will always fall. If the exchange is an open system, then by attracting money from outside, the price increases.
Law 41. The market is designed for the majority (95%) to lose, and the minority (5%) to earn.
Law 42. News is published in the interests of the person who pays for their publication.
Law 43. The size of the account is not decisive in the question of whether you win or lose. The presence of an algorithm and following it is crucial.
Law 44. If the price wants to go up, then there are no trades – the price goes up. The price “does not want” to fall, so to speak.
Law 45. If the situation is unclear, then postpone the transaction. Make a deal only in an understandable situation. With clear signals.
Law 46. If your trades are made with risk management, then you have a trading system. If there is a trading system, then you can manage your trading. The presence of management distinguishes chaotic trading from profitable.
Law 47. Profits must be hatched.
Law 48. All the troubles of a trader are from greed and stupidity. Cut off the game during trading, be less greedy.
Law 49. On the stock exchange, the one who knows how to wait in the wings always wins. Do not rush to enter into the transaction, if on, then there is no reason. Law 50. The best minds of the banking world are playing against you on the stock exchange. Don’t be a simpleton either.
Law 50. The best minds of the banking world are playing against you on the stock exchange. Don’t be a simpleton either.