Pretty interesting, when traders starting their way in the financial markets first of all think about some kind of trading system, method or style of trading, to whom they will make money. Or they start asking questions: "And how much can you earn with a particular trading strategy". This is fundamentally the wrong mindset for trading..
First of all, you need to gain experience and understand how the market functions.. Study his "anatomy", before handling the surgeon's scalp. Understand the main principles, trade concepts. Therefore, it is foolish to become a surgeon and start your journey by studying the scalp.. First you need to learn the anatomy. The same goes for the stock market. — first of all, you need to study the main principles.
There is 7 main principles, on the basis of which you can build any trading system, any trading method. Without knowing these basics, you can drain more than one deposit by trying different trading systems and strategies..
If you don't understand the main principles, then all indicators lose their meaning, системах, фильтрах, форумах, чатах, tips and signals. Using them will be a waste of time, effort and money..
What are these principles??
Pulse: one of the most important principles of market functioning. All movements are based on momentum. Thus, a trend is formed, откаты. At the heart of all these movements is impulse. Most indicators are based on momentum. Therefore, it is very important to understand the role of impulse.
The degree of participation of the stock in the general movement. The general movement of the market is a combination of movements of several hundred or several thousand shares.. Поэтому важно насколько stock принимает участие в этом общем движении.
Выбор акций. Since the general movement consists of movements of individual stocks, choosing the right stock from the huge amount is very important. You need to know many different ways and resources for stock selection.. And also choose the “right” stocks.
Market anomalies. If your trade is based on a verified and statistically positive anomaly, тогда вы будете делать деньги. And you absolutely don't need any indicator. A thorough understanding of such anomalies will give you an edge..
Market microstructure. Gives an understanding of, how the exchange takes place and how the market functions. This principle is especially important for swing trading and intraday trading.. It is necessary to understand the role of market makers, торговых роботов, arbitrageurs, large funds, etc.. Their behavior and tactics create certain trading patterns. Find and select working models.
Investing in Growth. These investors buy stocks, companies, which grow faster, than the average company in the market. It is necessary to understand the role of such purchases.
Price investment. Price investors are looking for shares of such companies, which are underestimated by the market. Они считают, that the market overreacts to good and bad news, due to which the movement of stock prices does not correspond to the long-term fundamental characteristics of the company. As a result, there is an opportunity to make a profit, buying shares, when the price is understated.
It is difficult to operate consistently and profitably without understanding these concepts.. The design of any system must take these principles into account..
Именно с изучения и понимания этих принципов должен начинать trader. And then build your trade, strategy and style.
