Investors should keep in mind that both technical and fundamental analysis are not enough to earn money on investment markets. Investors often forget about two significant aspects. The first is the management of our capital and the second is market psychology. Here are a set of basic rules that will help you achieve your goals in the world of investment.

Rules:

• Always open positions in the direction of the trend. Never break this rule even if it helps you earn money a few times. Break this rule and you will learn that the market is the ruler of the world of investments and unfortunately not the investor.
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• Keep a hold of your plan. You should forge a plan according to which you will invest your money with the addition of strict rules that should never be broken whatever the circumstances. Strict rules will help eliminate emotions like hope, greed, fear and many other emotions that could prove destructive on the market.
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• Do not invest all your capital in one particular investment. 10-20% of your capital in one transaction should be enough.
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• Do not change the level of your stop loss with hope that the market will change direction. Hope will lose you money and should be eliminated.
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• Cut losses as soon as possible. On the other hand do not fear losses. They are part of the game.
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• Do not be afraid to earn money. Hold winning positions as long as possible. Remember that before opening a position you should have an aim. If this aim is fulfilled then you may close your position, never earlier.
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• Do not force yourself to open a market position. If you do not see anything happening, just take a break.
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• Always evaluate how much you can earn in comparison to what you can lose. Try to hold at least a 3:1 relation.
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• Note down all your transactions. Analyze both the winning and losing transactions. By doing so you will not only understand your mistakes but you will understand your emotions when making different decisions.
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• Do not invest in a group. The more opinions, the more emotions. Does this mean that you should not read the analysts comments and reports? No, but it does mean that if you have a planned position, then do not change your decision upon reading some analysts differing opinion. Why should you be wrong? And remember, analysts are not always good traders.