Premise 1: KNOW YOURSELF

First, you need to be ruthless with yourself - admit that the greatest risk to trading is with you. Get a personal "Trading Log" and keep a daily record of it. This is the best tool for you to have a successful trading mindset as well as understand the demon hiding within you. A successful investor often has the same traits as a successful businessman. Preparing for storms is imperative, you must use your Trading Log to fix your personal problems and adjust your strategies BEFORE a storm hits. As Warren Buffet said, "Only when the tide goes out to do you discover who's been swimming naked!"

Premise 2: SET A GOAL AND SAVE MORE MONEY

Understanding the magic of saving, compounding as well as long-term thinking, Warren Buffett called Compounding the "eighth wonder of the world". If you don't have clear long-term goals, you won't save enough money. Imagine your investments are at risk and you have no offset cash flow? Savings and financial goals are what will ensure your financial "health" throughout the investment path!


Premise 3: DISCIPLINE AND COMMITMENT

Have you ever noticed that in a department store, overweight people always ride the elevators and beautiful people always take the stairs? If you are just starting out, join slowly, and so as not to be "overweight", practice taking the stairs. Practice taking DISCIPLINE and COMMITMENT TO DO them slowly and slowly!

Premise 4: REASONABLE USE OF TOOLS AND RESOURCES!

This is an issue that needs to be carefully considered. You need a good computer with a large screen and printer, along with an efficient desk and a comfortable chair. Likewise, the trading platforms of EBS, Morningstar, and cloud-based portfolio management websites are basic and required. Finally, don't overlook the great free resources your broker offers. However, don't let yourself get overwhelmed with so many tools and resources. Learn to focus on your toolkit.

Premise 5: TRANDING METHOD

Let's focus on this issue. Trading method is what helps you to systematize how you want to trade and you have to define and define it as soon as possible. Using William O'Neil's CANSLIM method - one of the most effective methods in existence. You can choose any method, as long as you don't leave the house without it!


Premise 6: WHAT TO TRADE FOR HIGH PERFORMANCE

By identifying high-probability deals with specific attributes, your odds of winning will increase.

In other words, there is no such thing as a 100% probability on any given transaction. But there are deals that contain a clearly higher probability of winning. By executing only high-probability trades and ignoring low-probability trades, at the same time doing this consistently over time - your profits will grow steadily too.

Premise 7: PROFIT UNTIL KNOW WHAT IS HAPPENING - NOT WHY

As investors, we should only find out if they are placing their money on the buy or sell door. Think of your chart as a weighing machine. All of this is reflected in price and volume. Consider technical analysis a real investment. It gives us a 360 degree view of what's really going on. Simply put, don't know why the dog is wagging its tail, it's just that the tail is wagging. Usually, you only discover why something happened weeks or months later

Premise 8: ASSET DISTRIBUTION

Warren Buffett's strongest strength is his ability to allocate wealth. His stellar long-term performance was not in upmarket, but because he lost less in down markets. Studies have shown that about 90% of diversified portfolios outperform by asset allocation decisions, not by selecting individual stocks. You should build a portfolio that can be bent but not broken. Rainbow portfolio with carefully allocated assets will weather every market cycle and thus provide a long and healthy financial life. This is done by selecting a group of assets that are not highly correlated.