VICKTOR FLAGËNHEIN’S AXIOMS

During the many years investing in the financial market, Vicktor Flagënhein read a lot of books, talked to many successful traders and learned a lot from his own experiences.

Vicktor Flagënhein’s axioms are a selection of important principals synthesized in short blunt sentences.

Some of them were written by Flagënhein himself, others were learned in many years at the market. The purpose of this section is not to be original, but useful and helpful by providing essential lessons to anyone who wants to be a successful trader.

The Trend

  • The trend is your friend.
  • Learn to trade in the bull market AND in the bear market.
  • The Market moves in three directions, upwards, downwards and sidewards. Only the first two matters.
  • It doesn’t matter if the market is bull or bear. The real important thing is being on the right side.
  • When you are on the right side, two forces will work on your behalf: the news and all the people positioned on the wrong side.
  • If you were in a two-army battle, the best strategy would be to wait and realize when the loser side surrenders and joins the winner side. In a market with no defined trend, this is what to do.

Profit and Loss

  • Turn your virtual wins into real ones. Sooner is better than later.
  • Take their money before they take yours.
  • Worse than winning just a little, is losing.
  • Profit, even a small one, does not make you crash.
  • In financial speculation, an autopsy generates learning, not profits.
  • Do not regret your virtual losses.
  • Do not celebrate you virtual winnings.
  • The best STOP LOSS is the one you don’t need to use.
  • STOP LOSS: Hurts your vanity and preserves your wallet.
  • Use a STOP LOSS for your entrance in the market and a STOP for profit protection.
  • In the market participating is not important. Winning is.
  • Face your losses with serenity.
  • Manage your profits with discretion.
  • Remember: An awful situation can get worse.
  • When liquidating a certain position, never mind wondering how much more you could have profited.
  • In the speculation business, the profit is like an ice cream under the sunlight: Either you enjoy it or it melts in your hand.
  • There is only one way to definitely convince a person that he/she is wrong. Let him/her lose money.
  • When you realize what you should not do in order to avoid money losses, you start to learn what you should do in order to make money.
  • The manipulation of prices is the main excuse used by unprepared speculators to justify losses.

Emotions and Attitude

  • A successful trader has: the discipline of a machine, the coolness of an iceberg, the cunning of a fox and the patience of a monk.
  • Immediately recognize an error.
  • Objectivity: Do have a strategy.
  • Discipline: Stick to your strategy.
  • Boldness: Take risks, inside your strategy.
  • Humbleness: Immediately liquidate a loser position (outside your strategy).
  • Success is a habit, so is failure. Get used to always win.
  • Keep it simple.
  • The right place for following the crowds is a stadium. In the market, be a speculator.
  • Do not gamble, speculate.
  • Market addicted people die very fast from overdose.
  • After many errors in a row, stop and adjust your focus.
  • The market will never be against you. You, on the other hand, might be against yourself.
  • Luck is the point where competence meets opportunity.
  • Do not try to become a millionaire overnight. Do try to become a millionaire day after day.
  • In the market the optimist loses a lot. The pessimist wins too little. Be realistic.
  • To speculate is simple, not easy.
  • Sometimes things are so simple that you might overlook them.
  • Being angry towards the market is simply foolish.
  • You must trust yourself and your analysis in order to be a successful trader.
  • Speculation is a hard business, and it demands persistence.
  • In order to be a winner in the market you must be not just a bookman, but a speculator bookman.
  • Every mistake in the market strikes two delicate points: your wallet and your self-esteem.
  • The trader’s main enemies are in his/her own mind: fear and hope, panic and euphoria.
  • A great number of brilliant trader’s tragedies can be directly linked to their presumption.
  • Be convinced that if there is anything wrong, it is you not the market.
  • A market guru can convey his knowledge, but not his experience.
  • You might know what to do and even though lose money, if you don’t do it fast enough.
  • If you believe that you can or that you cannot, you are right either way.
  • Focus on the main purpose that led you into the financial business: The profit.
  • As traders we cannot control the market, but we can control what we do in the market.
  • Do not break your own rules.
  • Do not be anxious to enter the market. Let it come to you.
  • Do not let greed compromise your judgment.
  • Do not let your vanity compromise your judgment.

Strategies

  • Buy at the support and sell at the resistance.
  • Find out at the evening news what the market showed you during the day.
  • Hitting the bull’s eye is a myth, it does not exist.
  • More important than the amount of money you currently possess is having a strategy that works.
  • If the market is sending confusing signals, stay out of it.
  • Never speculate using your “guessing skills”.
  • Only enter the market if you have a door and a window out.
  • When speculating you must act fast or stay out.
  • Only enter the market when you are sure that you’ve got a favorable scenario for your operation.
  • One of the most useful things to learn is: give up trying to grab the first and the last cent.
  • Be aware of the whole forest, not only the trees in front of you.
  • A winning client is an asset for any brokerage company.
  • More important than prices is timing.
  • When you see an opportunity, do not hesitate to execute the transaction. Take advantage of other people’s hesitation.

The News

  • Listen to what “the specialists” say, and you will end up broke.
  • People who go to brokerage companies and forums looking for good advice, in reality are not looking for good advice, but any advice.
  • The market has reasons that reason itself knows nothing of.
  • Be very skeptical of what you read and hear.