Quick Wisdom for Traders
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.
- Stop searching for the Holy Grail – there isn’t one.
Chart Research Analyst