22 Trading rules for Traders and Investors
“I told my psychiatrist that everyone hates me. He said I was being ridiculous – everyone hasn’t met me yet.” . 1) All successful traders use methods that suit their personality; You are neither Waren Buffett nor George Soros nor Jesse Livermore; Don’t assume you can trade like them. 2) What the market does is beyond your control; Your reaction to the market, however, is not beyond your control. Indeed, its the ONLY thing you can control. 3) To be a winner, you have to be willing to take a loss; (The Stop-Loss Breakdown) 4) HOPE is not a word in the winning Trader’s vocabulary; 5) When you are on a losing streak — and you will eventually find yourself on one — reduce your position size; 6) Don’t underestimate the time it takes to succeed as a trader — it takes 10 years to become very good at anything; (There Are No Shortcuts) 7) Trading is a vocation — not a hobby 8) Have a business/trading plan; (Write This Down) 9) Identify your greatest weakness, Be honest — and DEAL with it 10) There are times when the best thing to do is nothing; Learn to recognize these times [...]
READ MORETomorrow is too LATE for Intraday Trader
Trading has many ups and downs and can easily cause us to feel defeated. However, defeat can only be disastrous if we classify it as disastrous. Losses, defeats, failures, etc. have been a part of history for every person who has reached high levels of success. The difference with the successful people is that they analyze the situation immediately. Those that tend to fade away are those that wait until tomorrow or maybe never to review and discover why the results were not what they expected. To be successful we must accept every result as a part of our growth and to apply those findings today. Don’t wait until tomorrow, because tomorrow may be too late.
READ MOREHow To Make Money In The Stock Market?
So you want to know how to make money in the stock market. The first step in knowing how to make money in the stock market is knowing how not to lose it all. If you ignore this one rule, you’ll lose all your money in the stock market and become one of those bitter skeptics that complains that the stock market is “rigged”. Go for small daily and weekly gains, not big gains. I’ve never met any successful trader who was a speculator in the markets. By speculator I mean someone who goes into a trade expecting to hit a home run and make a lot of money off a single trade. This is what pink sheet and OTCBB traders do. This is why the pink sheets and the OTCBB market has killed more investors than all other markets combined. You should never buy a stock because you think it is going to be a HUGE winner. Rookies focus on how much money they can make. Professionals focus on how to limit losses. Don’t get me wrong. I have hit a home run. It was more luck than skill. My goal was to hit a small winner, but then [...]
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