1. Have a system and an iron discipline. If you abandon it and go to the trailer of market psychology, it is very likely that you will fail. For a day, we can change our minds often and what seems like a good purchase can become a disaster in a matter of hours If you have no references to operate and you rely on hope, you are lost.
2. If you have set a stop level, stick to it. It is better to be faithful to a work dynamic and to assume a small loss than to lose capital or discipline. If you do not get profits, analyze why. The fundamental virtue is always to be fresh and ready to take an advantageous position. Avoid supporting positions against yourself or having a position without technical references.
3. Try to avoid euphoria or discouragement. This is not an easy task, as often objective prices explode and quotations rise sharply. Other times pessimism dominates the atmosphere; it is in this type of situation that you will be able to do your best work. The psychological climate is normally a trap, and it is important to know how to avoid it.
4. Set objective prices It is better to undo an advantageous position at a reasonable price than to abandon it to one’s fate. Unless the position is taken in a primary market floor it is best to be disciplined with the price targets.
5. Tend to buy on media and sell in resistors. Often, these levels are clear and many people can see them. A bullish trend usually returns to the support zone, this zone often gives the buy signal although it seems that the market is deteriorating. And a drop after a new maximum is a buy signal, a rebound after a new minimum is an exit signal.