50 Bite Size Trading Tips and Tricks by Nick Radge
50 Bite Size Trading Tips and Tricks by Nick Radge
- 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 Beginners 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.
- 10. 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.
- Take responsibility for every decision you make.
