Claude Cockburn, writing for the Times of London “from New York, described the irrational exuberance that gripped the nation just before the Great Depression. As Europe wallowed in post-war malaise, America seems to have discovered a new economy, the secret of uninterrupted growth and prosperity, the source of transforming technology:

“The atmosphere of the great boom was savagely exciting, but there were times when a person with my European background felt alarmingly alone. He wanted to believe, as these people believed in eternal recovery of the great bull market or other contents only a person with whom he might discuss some general doubts without being regarded as an imbecile or a person of deliberately evil intent – some kind of anarchist, perhaps. ”

The largest with most analysts impeccable credentials and track record does not predict the imminent collapse and the unprecedented economic depression that followed. Irving Fisher, an eminent economist, who, according to his biographer-son, Irving Norton Fisher, lost the equivalent of $ 140 million in cash today in the crash, made a series of soothing predictions. On October 22 he said these avuncular statements: “Quotations have not met with actual values, as yet … (There is) no cause for the collapse … The market has not been inflated but merely readjusted … ”

Your stock trading rules are your money. When you follow the rules you make money. However, if you stop your stock trading rules the most likely outcome is that you lose money.

Once you have a reliable set of stock trading is important to keep in mind. Here is a discipline that can reap benefits. Read the rules before the day begins and also to read the rules when your day ends.

Rule 1: it must follow the rules.

Of course, if you develop a set of rules that must be followed. It is human nature to want to change or break rules and take discipline to continue to act in accordance with the rules.

Article 2: The risk will never exceed 3% of my total portfolio on a stock trade.

There are many old traders. There are many bold traders. But we are never old bold traders. Protect the capital base is critical to the success of stock markets over time.

If you know the pitfalls of trad ng ¬i you can easily avoid them. Small mistakes are unavoidable, such as

incorrect insertion of the stock symbol or incorrectly setting a buy level. But these are forgivable and, with

Fortunately, even profitability. What should be avoided, however, the errors are due to bad advice, rather than

simple mistakes. These are the “d eadly? Mistakes that ruin the whole career, instead of just one or

two jobs. To avoid these problems, we need to look closely and you stay diligent.

Thinking of trading errors, such as driving a car on icy roads: If you know that driving on ice is dangerous,

you can avoid traveling to a storm of sleet. But if we do not know the dangers of ice ’t, you may drive as if there

threats were not only the realization of a time that his mistake and ’r already off-road.