Don’t try to read into other people’s trading decisions.
By all means like a stock, but don’t try to be best friends with it forever. Instead, spend time nurturing positions that are being kind to you.
Beware the Beginner's Cycle. The want to be right will cause you to collect courses and books and will only be a costly and frustrating exercise. The secret is elsewhere.
Actually, there is no secret. It’s all in the maths.
Losses when trading are inevitable, but losses should always be limited.
Have a prepared trading plan so you don’t rush into bad decisions. Time spent planning will help you avoid catastrophic losses, riding the emotional roller coaster, and other unnecessary headaches.
Get off your high horse. Your ego will eventually cost you dearly.
Validate your strategy before you risk your capital.
Don’t waste your time on other trader’s successes. The only person you’re competing against is yourself.
Ignore any broker that tells you to buy when there is blood in the streets. You can be sure it’s not theirs.
Outsource to people who do the stuff they’re better at so you can do the stuff you’re better at.
Make haste slowly. Ensure you have a validated strategy that has an edge and ensure you have a full understanding of the journey ahead of you. The markets will always be there. What won’t be there if you’re in too much of a hurry is the capital in your account.
Understand positive expectancy. When you see it, you’ll get it.
Ask someone you trust if you are unsure.
Risk a small amount of capital on each trade.
Sentiment will drive the market, or a stock, a lot further than logic ever will.
Only fools claim to know the future.
Don’t be a dick for a tick. Saving a few cents here and there will only cost you dollars later on.
You can’t control the market. Don’t waste your time by watching every trade tick along.
Find a strategy that makes sense to you.
Be curious and keep a trading diary. Don’t be scared to learn something new.
Explore new ideas and opportunities often.
Let go of things you can’t change. Concentrate on things you can.
There is no point questioning the market.
The market will pay you when it’s ready. You just need to be there when it does.
Find a strategy you actually enjoy following.
Realize that the harder you work, the luckier you will become.
Risk not thy whole wad. There is a reason why compounding is the 8th Wonder of the World.
However good or bad a situation is now, it will change. Accept that positive expectancy sometimes takes time to show its hand.
Realize that being right does not equate to profits.
45% of trades will tend be profitable. 45% will tend be losses. 10% will be breakeven. Your job is to make the winners count.
Make mistakes, learn from them, laugh about them, and move along.
Successful trading is not a sprint. Buffet didn’t earn his reputation in a single year – or decade.
The only thing you can control is the amount of money you’re willing to lose on each trade.
Don’t over think things. Simple works best. Complex will eventually break.
Understand why your strategy makes money.
If you can’t pull the trigger it’s usually because you don’t trust the strategy you’re using. Stop and re-evaluate.
Trends can’t not exist.
The biggest hurdle to overcome is between your ears.
Don’t fear the market. It can’t actually hurt you. You can hurt you though.
The object of gaining a trading education isn’t knowledge; it’s to enable action.
Never move a stop backward. You’re mind is screwing with you.
Rules you can’t or won’t follow are of no use to you.
Your initial reaction to any adverse situation is usually wrong.
Risk and volatility are not the same. Volatility can increase returns. Risk can increase losses.
Think long term with regard to strategy application. Performance and trade outcomes in the short term are random.
The keys to success are consistency, discipline and patience. They cannot be bought.
Every stock that goes bankrupt exhibits a sustained downtrend first.
Any strategy is only as good as the person using it.