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What is more important is to have a basic set

  You should expect occasional drawdowns as part of any valid trading system, but you must take them and move on. If you are comparing various stocks within a group, buy only the strongest and sell the weakest.

  The key is to find a simple methodology that generally works bearing in mind that no one indicator works all the time. The mind can play games with itself following losses and the urge "to get the money back" is extreme, and should be dismissed. You just need discipline.

  Rule 4: Patience is a virtue

  This may be the greatest trait of a successful trader. Once you have the set up to enter a trade, allow it time to develop and give it time to create the profits you expected.

  The point to bear in mind based on going with the trend is that the public continues to buy when prices have fallen, whereas the professional buys because prices have rallied.

  The real money in trading is made from the one, two or three big trades that occur every so often. It is not the money that is important, but the mental capital that is used up when you are preoccupied by a losing trade tilting pad thrust bearing that is obscuring other opportunities.

  There are of course many times though when things start to go wrong, and during these moments it is human nature to question the underlying methodology or trading system, or tweak the entry/exit points to try and try to fix the problem, or even to abandon the existing system and start again. Regular CFD traders know that stocks that are bid for are almost invariably already strong before any announcement. The rule of survival is not to "buy low, sell high", but to "buy high and sell higher".

  Rule 6: Forget the urge to get your money back

  If you do have a series of sharp losses, which happens to every trader at some stage, take some time off.

  What is more important is to have a basic set of rules which cover the emotional aspect of the trading process. One technique that you favour might indicate a buy signal, whereas another says sell, and a third indicator might not be conclusive or suggest perhaps adding to positions.

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