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.

The usual description of each market is assumed that each party wishes to buy or sell a known quantity at each possible price. All the traders come together, and in one way or another is the price that clears the market? That is, the amount requested is as close as possible to the supply.

After all was said to be authoritative stock trader W. Haddad of BK Labovitch that ultimately, the economy is supply and demand.

This may or may not be an adequate description of the markets for consumer goods, but is clearly inadequate when describing security markets. The value of any capital asset depends on its future prospects, which are almost always uncertain. Any information that leads to these perspectives, can lead to one, s that we know are always uncertain. Any information that depends on its prospects for the future could lead to a new estimate of the value. The fact that a trader is willing to buy or sell a quantity of a commodity or security at a particular price is intended to be only the information of this type. Offers for this trade affect the bid in May. Prices may, therefore, is clear and information markets Covey.

Caracommunity.com –
Daily Report for Wednesday, Jun 17, 2009

According to Mr. Bill Cara’s today’s blog, he said that the people are pulling their bids because of the Obama Administration submitted white paper on Financial Industry Reform.

[7:52am ET] Technical analysts worldwide are reporting the breakdown of significant support levels, ie, a series of recent lows that brought in buying, which indicate that the equity market’s advance since early March is now over, and prices are most likely to slide into summer.

The weakness started a few days ago with alarming economic data, particularly in Europe, resulting in a decline in the Euro and rally in the $USD. The downward pressure on commodity markets and equity markets, which until now has brought in a pattern of buying the dips, suddenly took on a new light as traders pulled their bids. Possibly there was selling yesterday resulting from the uncertain reaction in Congress and on Wall Street to the Obama White Paper on Financial System Reform.

…

If bankers feel threatened by stricter guidelines and tougher regulatory scrutiny, rest assured they will voice their displeasure by pulling equity bids, aggressively pushing stocks lower, letting politicians know bankers hold the real power.

So are we supposed to be little cautious? Or hold on tight for another rough ride?