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(From BusinessWorld (Philippines))
Byline: Den Somera
After sixteen weeks of the trading lab, I believe we have seen the eight most important trading principles one needs to know to get started in stock trading and investment. Let me hasten to add, however, that in order to tip the balance of both winning a trade in your favor and making money in the process, you still need to get a good handle of the nuances of these trading principles, which we will try soon after all the other supplemental trading principles are covered in the trading lab.
With the exclusion of the 8th trading principle, textbooks divide these important principles into three main categories: trading system development, money management (position-sizing), and sound reading of market psychology. The result of the 16th week (February 27 - March 3, 2006) of the trading lab provides a good sample as to which of the three …