Having actually been trading stocks and options in the capital markets expertly over the years,I have seen many ups and downs. I have seen paupers end up being millionaires overnight … And I have seen millionaires end up being paupers overnight … One story told to me by my coach,-,is still engraved in my mind: ” When,there were two Wall Street stock market multi-millionaires. Both were extremely effective and chose to share their insights with others by selling their stock market projections in newsletters. Each charged US$ 10,000 for their opinions. One trader was so curious to know their views that he invested all of his $20,000 savings to purchase both their opinions. His friends were naturally delighted about what the two masters had to say about the stock market’s instructions. When they asked their buddy,he was fuming mad. Confused,they asked their buddy about his anger. He stated,’One stated BULLISH and the other stated BEARISH!'”. The point of this illustration is that it was the trader who was wrong. In today’s stock and option market,individuals can have various opinions of future market instructions and still profit. The differences lay in the stock picking or options strategy and in the mental attitude and discipline one uses in executing that strategy. I share here the fundamental stock and option trading concepts I follow. By holding these concepts strongly in your mind,they will assist you consistently to profitability. These concepts will help you decrease your threat and enable you to evaluate both what you are doing right and what you might be doing wrong. You might have checked out ideas similar to these prior to. I and others utilize them due to the fact that they work. And if you remember and reflect on these concepts,your mind can utilize them to assist you in your stock and options trading.PRINCIPLE 1. SIMPLICITY IS PROFICIENCY. Wendy Kirkland I learned this,When you feel that the stock and options trading technique that you are following is too intricate even for simple understanding,it is probably not the very best. In all aspects of effective stock and options trading,the most basic methods frequently emerge victorious. In the heat of a trade,it is simple for our brains to end up being mentally overloaded. If we have a complex strategy,we can not stay up to date with the action. Simpler is much better.PRINCIPLE 2. NOBODY IS GOAL ENOUGH. If you feel that you have outright control over your emotions and can be objective in the heat of a stock or options trade,you are either an unsafe types or you are an unskilled trader. No trader can be absolutely objective,particularly when market action is unusual or hugely unpredictable. Much like the best storm can still shake the nerves of the most experienced sailors,the best stock market storm can still unnerve and sink a trader very quickly. Therefore,one need to strive to automate as many vital aspects of your strategy as possible,particularly your profit-taking and stop-loss points.PRINCIPLE 3. HOLD ON TO YOUR GAINS AND CUT YOUR LOSSES. This is the most essential concept. Many stock and options traders do the opposite … They hang on to their losses way too long and view their equity sink and sink and sink,or they leave their gains prematurely only to see the rate go up and up and up. In time,their gains never cover their losses. This concept takes time to master properly. Reflect upon this concept and evaluate your past stock and options trades. If you have been undisciplined,you will see its truth.PRINCIPLE 4. HESITATE TO LOSE CASH. Are you like the majority of beginners who can’t wait to leap right into the stock and options market with your money wanting to trade as soon as possible? On this point,I have found that the majority of unprincipled traders are more scared of losing out on “the next big trade” than they hesitate of losing money! The key here is STAY WITH YOUR METHOD! Take stock and options trades when your strategy signals to do so and avoid taking trades when the conditions are not fulfilled. Exit trades when your strategy states to do so and leave them alone when the exit conditions are not in place. The point here is to be scared to discard your money due to the fact that you traded unnecessarily and without following your stock and options strategy.PRINCIPLE 5. YOUR NEXT TRADE COULD BE A LOSING TRADE. Do you absolutely think that your next stock or options trade is going to be such a big winner that you break your own money management rules and put in whatever you have? Do you remember what typically takes place after that? It isn’t pretty,is it? No matter how confident you might be when going into a trade,the stock and options market has a method of doing the unanticipated. Therefore,constantly stay with your portfolio management system. Do not intensify your expected wins due to the fact that you might end up intensifying your very genuine losses.PRINCIPLE 6. GAUGE YOUR EMOTIONAL CAPABILITY BEFORE INCREASING CAPITAL OUTLAY. You know by now how various paper trading and genuine stock and options trading is,don’t you? In the very same method,after you get utilized to trading genuine money consistently,you discover it extremely various when you increase your capital by ten fold,don’t you? What,then,is the distinction? The distinction remains in the emotional concern that features the possibility of losing increasingly more genuine money. This takes place when you cross from paper trading to genuine trading and likewise when you increase your capital after some successes. After a while,the majority of traders understand their maximum capacity in both dollars and emotion. Are you comfortable trading up to a few thousand or tens of thousands or numerous thousands? Know your capacity prior to dedicating the funds.PRINCIPLE 7. YOU ARE A NEWBIE AT EVERY TRADE. Ever seemed like an expert after a few wins and then lose a lot on the next stock or options trade? Overconfidence and the false sense of invincibility based upon past wins is a dish for disaster. All experts appreciate their next trade and go through all the correct steps of their stock or options strategy prior to entry. Treat every trade as the very first trade you have ever made in your life. Never differ your stock or options strategy. Never.PRINCIPLE 8. YOU ARE YOUR FORMULA TO SUCCESS OR FAILURE. Ever followed an effective stock or options strategy only to fail severely? You are the one who figures out whether a strategy succeeds or stops working. Your personality and your discipline make or break the strategy that you utilize not vice versa. Like Robert Kiyosaki states,”The financier is the asset or the liability,not the financial investment.”. Comprehending yourself first will lead to ultimate success.PRINCIPLE 9. CONSISTENCY. Have you ever changed your mind about how to execute a strategy? When you make changes day after day,you end up capturing nothing but the wind. Stock market changes have more variables than can be mathematically created. By following a proven strategy,we are guaranteed that somebody effective has stacked the chances in our favour.When you evaluate both winning and losing trades,identify whether the entry,management,and exit fulfilled every requirements in the strategy and whether you have followed it exactly prior to changing anything. In conclusion … I hope these simple standards that have led my ship of the harshest of seas and into the very best harvests of my life will assist you too. Best of luck.