Max Günther formulated the basic principles of trading, названные Цюрихскими аксиомами:
About risk:
Anxiety – it's not a disease, but a sign of health – if you are not worried, you are not risking anything significant.
Always play meaningful bets – if the quantity is so small, that his loss will not be of any significant significance, that is, probably, also will not bring any tangible profit.
Resist the temptation to diversify.
About greed:
Always take your profits quickly enough. Decide in advance, what benefit do you want to get from the deal, and when you get this, Go out.
About hope:
When the ship starts to sink, don't pray – jump out.
Accept small losses calmly as inevitable. Expect multiple losses while expecting large gains.
About forecasts:
Human behavior cannot be predicted. Don't trust the one, who claims, what the future knew, however vaguely.
About models:
Chaos is not dangerous, until it starts to look orderly.
Beware of the history trap – it builds on the old, but absolutely not guaranteed certainty, that proper rehearsal on historical data allows for accurate predictions in some situations.
Beware of the Chartist's Illusions – it is a characteristic feature of the human brain – look for causation there, where they don't exist.
Beware of player error – there is no such thing as “today is my lucky day” or “I'm on fire today”.
About mobility:
Avoid “take root”. They impede movement.
Don't fall into the trap of acidification because of feelings., like loyalty and nostalgia.
Never hesitate to leave an enterprise, if something more attractive appears.
Об интуиции:
Guess you can trust, if it can be explained.
Never confuse guesswork with hope.
About occultism:
If astrology worked, then all astrologers would be rich.
Superstition need not be eradicated. You can enjoy it, if it is constrained within certain limits.
On optimism and pessimism:
Optimism means expecting the best, but confidence means to know, how will you deal with the worst. Never make a move, if you are just optimistic.
About consensus:
Ignore the majority opinion will, I guess, not right.
Never follow speculative hype. Often, best time, to buy something just then, когда никто еще не делает этого.
About perseverance:
If something doesn't work the first time, then forget it.
Never try to save bad trades by averaging.
About planning:
Long Term Plans Breed Dangerous Faith, that the future is in control. It's important to never take your long-term or other people's plans seriously.. In fact, this axiom point refers to the advantages and disadvantages of having a trading strategy and sticking to it, no matter, what other traders say or do. If you don't have a trading strategy, then it will get worse. but, do not be afraid to add or subtract something to these principles, depending on, what works or not for you.
Later on the website of the applicant a book and you can familiarize yourself with all the rules.
