SOME OF GREAT RULES IF YOU WANNA BEAT THE 95%

There are below four some great rules which really do guide me in the couple of last year. Without them I would be in the loser majority of 95%. With these rules we can beat the market and alpha each year and make more than 40% profit consistantly on yearly basis.

We are not Wall Street guys, but we beat most of the traders in New York each year. We follow some basic rules like the followings:

• We never put our all money at one time. We are buying only small positions first and test how the market works. With this cautious system we do better than 95% of traders who start investing with the whole capital. Our highest exposure is never ever higher than 40%.
• We buy indices. They are much cheaper than stocks and not as volatile as stocks. We are not spending more than 0,2% on commissions per year. We are not able to make 10% per day, but we cannot lose 10% neither within a day. If you don’t have 4-6 hours per day to analyze your stocks, trade the indices.
• Just trade the flagship indexes like DJIA, SP500, Nasdaq, FTSE, DAX, NIKKEI. Forget the small markets, they are more pricey and they mostly follow the big indices.
• Keep cash always on your account to be ready for randomly occurred buying opportunity.

These four rules are so simple and easy to follow them but you are going to realize it helps you making better returns.

The BFM Assets Team.