9 truths about the stock markets and trading



1. Stocks prices always move in cycles. Periods outside those cycles are usually swift and powerful

2. There is a very high correlation between stocks during big selloffs and during the initial stage of recovery. In general, correlation is high in bear markets.

3. Try to trade only with the direction of the main movement. It is now only the path with least obstacles, but also provides the best profits. Have a simple method to identify the trend.

4. Being wrong is not a choice. Staying wrong is.

5. The market conditions will never be perfect and when they seem to be so it is a good idea to decrease your exposure and take some profits. With that said, there's no need to stay in the market all of the time. When you don't see a good setup, just watch from the sidelines.

6. If you understand the incentives of the major market players, you can predict their behavior. Technical analysis serves for just that.

7. Your first loss will be your best loss. No one is right all of the time and there is no reason to be. Big market players make ton of profits by being right only 30% of the time.

8. Optimism and pessimism are contagious. Investors often lose logic and become emotional. The news media and the recent price action signal play an important role of developing such moods.

9. It doesn't matter how smart you are, how ingenious your idea is or how cheap the stock is - if the market doesn't agree with you, you will not get paid. Period.

Source: Bloomberg Pro Terminal

Jr Trader Alexander Kumanov

 Trader Aleksandar Kumanov

Read more:

If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

chat with dealer
chat with dealer
Cookies policy