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There are dozens of books about Warren E. Buffett and his strategy.

Many of these are chasing after his secret investing formula. And though he would never reveal his precise method, he clearly has golden rules, akin to a strategy or a plan. 

And though this may come as a surprise, these golden rules are basically the same for all types of successful investing. Therefore, even if a trader and an investor such as Buffett appear to be worlds apart, actually, they have more in common than one would think.

So how do traders get started? They should ask themselves the following questions before they start trading: What should I buy?; when should I buy?; how much should I buy?; and when should I sell?

In terms of what to buy, this is a question about the appropriate financial instrument. In trading, this comes under the topic of portfolio selection.

Which stocks should be chosen? Which futures?

Traders and investors certainly have different approaches and rules such as fundamental versus technical, but, either way, they have to make a clear decision.

Those who can't decide haven't done their homework, and a buying decision should be made on the basis of facts, not simply guesswork.

In terms of when to buy, this should be done when a trader expects to derive a statistical advantage from a stock's performance, after trading fees.

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So, traders who sit in front of a chart and hesitate "should I continue to wait to see if the support level at 41.23 will still hold for a third time ..." are doing something wrong because they lack a precise plan.

When thinking about how much to buy, this is also known as position sizing.

Although the old adage of not putting all one's eggs in one basket is certainly correct, neither should one overdo the egg collecting. Reasonable position sizing is one of the few forms of active and good risk management.

Doubling the position size shortly before pressing the buy button because of sudden certainty that the trade of the year is about to happen is therefore not a good idea. Naturally, in a particular case, a trader might be successful and lucky this way, but this doesn't constitute a plan that should be repeated over the long term.

Finally, when figuring out when to sell or exit, this once again is related to timing. Buffett holds many investments for a lifetime, making "never" often his answer to this question.

But for traders, the exit can be a target that is reached based on a time-based exit after X days or many other things. Traders who therefore want to squeeze a few more ticks aren't real traders because they would have known that the answer to "when should I sell" for a quite a while before they started the trade.

These are then the golden rules on the stock market to which traders must have an answer. Buffet knows these questions and also the answers, as will a real trader at moomoc.

Those who find a good answer to these questions should be successful.

Even if traders have different priorities from investors, that doesn't mean that traders don't have a plan. Traders simply concentrate on the essentials such as information and data series, which they analyze according to a statistical interest. 

This article is commentary by an independent contributor.