1. If you don't know where you're going, you will wind up somewhere you never wanted to be.
2. The goal of a good trader is not to make money, his goal is to trade well. If he trades right, money follows.
3. Successful traders keep honing their skills. Trying to reach their personal best is more important to them than making money.
4. When you realize that a gambler's high or fear is clouding your mind, stop trading. Your success of failure depends on controlling your emotions.
5. Most traders with good systems wash out of the market because psychologically they are not prepared to win.
6. You may have to devote as much energy to analyzing yourself, as you do to analyzing the markets.
7. Plan the trade and trade the plan.
8. Your first goal must be long-term survival. Second - growing your account. And third - making profits.
9. You gotta be willing to enter the market during quiet times and take profits during wild times.
10. Support and resistance are like good wine, become better with age.
11. When support and resistance become too old, they become weaker.
12. When the market rises to a new peak on lower volume than its previous peak, look for a shorting opportunity.
13. Most trend breakouts are false and are followed by reversals.
14. Most traders take a good system and destroy it by trying to make it into a better system.
15. Most traders get killed by one of two bullets - ignorance or emotion.
16. It pays to wait for trades that allow very close stops.
17. It is a good idea to get out of a trade if you cannot take money off your mind. Concentrate on quality and having a money management plan, that puts you in control.
18. Stops should be moved only one way - in the direction of the trade.
19. When you go long place your stop below the latest minor support level. When you go short - above resistance.
20. Prices have to move away from your entry point by more than the average daily range before you move your stop to a break-even level.
21. There is nothing wrong about reentering a trade after getting stopped out. Professionals keep trying to get in until they get a good entry using tight money management.
22. When you are not sure whether to stay in a trade or not, take profits and reevaluate the situation from the sidelines. People think much more clearly when they have no money at risk.
23. A trade doesn't end when you close it. You must analyze it and learn from it.
24. Analysis is an antidote against emotional trading.
25. Learn from history and profit from your experiences.
Thanks!!! Good stuff :)
Thank you for condensing all these points into something easy to read and understand. Your time has been much appreciated over the last year.
This is great thanks!
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