Thumb rule, or?

[killovicz]

Hello Peps

I'm newbie and I have two equations about trading:

The first one is a general question:
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Are there any thumb rules in trading? Can you say that:

In times of high economic activity: go long ( and spread your investments over many stocks, to "play safe" ) ?

In times of relative economic activity: ...well I ques that this is the hardest part to generalize, perhaps: look for arbitrages, hedge your bets, try to "play safe" some how?

In times of low economic activity: in general go short, perhaps hedge your investments with call options (,,,and of course remember to set your stops and never trade any without a possibility to set a stop ) ?

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The secound is a question about a specific trade:

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I'm considering going short on Crude Oil and at the same time to buy a call option for the same amount of oil. B/c I believe that the economic activity will be going down truthout the summer and there by the need for energy.

But at the same time I'm a noob and I don't want to start my trading carrier with a big lost so I insure my self by buying an call option on same amount of oil, this will reduce my "potential" earnings, but on the other hand better to be safe then sorry

Any comment is welcomed, thanks in advance lady's and gents

 

[jiggly]

do a search on the forum, there are many principles, rules of thumb and axioms related to trading, it has been covered before.

 

[killovicz]

Oke thanks for the replay mate

I have been raeding a forums a bit and found out that:

A key to become a good trader is a good marked analysis...

...a key to a good marked analsyis is knowing where to put your ressistence and support points and drawing some realistic trends. + a lot more (I ques)

...a key to not loos to much on a single trade is to SET A STOP!!!

However markeds are so turbulant ATM. so I'll wait a bit before starting trading for real money! I'm gona start reading Mike Douglas'es Trading in a zone, and simontaniusly I'll start playing with "play money"

Thanks again

 

[jiggly]

good on ya,

you may also want to read,

reminisences of a stock operater and anything on jesse livermore,
new market wizards
The Zurich Axioms (this will help answer your rules of thumb question in much more detail)

just to get your started............