Trading Wisdom: Quick Wisdom for Traders

January 3, 2020 / By Zach Radge / Trading Psychology

We can all do with a little more trading wisdom, right?

Sometimes we need reminding how to stay on track with our trading. Here are some points I’ve learnt over the years.

Never over trade. Best not trade at all than over trade.
Understand your personality then build your strategy around it to find your personal edge.
Don’t give up – you’ll get there with discipline and persistence.
Don’t trade to be a millionaire overnight.
Get comfortable with losing yet celebrate the wins.
Cut your losses short, let your winners run.
Risk management, risk management, risk management – don’t leave home without it.
Don’t try to catch every single trade – FOMO is a capital killer.
Keep reading, learning, and find a trusted mentor.
Learn the art of correct position sizing.
Stop listening to Moon-Doggy on that stock forum. He doesn’t know what he is talking about.
Never think you know everything.
Get rid of ego when you are trading. It may serve you elsewhere but not in the trading arena.
The markets are complicated yet your trading strategy doesn’t have to be. Keep it simple.
Know your entry, know your exit, place your trade, then manage your positions.
Never forget you have family, friends and other interests outside of trading.
Great trading has nothing to do with high intelligence.
Anyone can become an exceptional risk manager.
Win percentage does not necessarily correlate with being a profitable trader.
Don’t average down – take the loss and move on.
Trade your strategy, not the noise.
Money can sometimes be made by sitting on your hands – patience is key.
Risk management is the King, discipline is the Queen – your Kingdom will fall if you don’t apply both.
The markets are not a casino – get your kicks elsewhere.
Don’t over-trade, don’t over-think.
Ensure exercise and a healthy lifestyle is part of your trading plan.
Don’t give up your day job. Trade for a second income.
Stop searching for the Holy Grail – there isn’t one.