- Patient with winners, and impatient with losers
- Making money more important than being right
- View TA as a picture of where traders are lining up to buy and sell
- Before they enter every trade they will know their profit target and/or stop exit
- Approach trade no.5 with the same conviction as the previous 4 losing trades
- Use naked charts
- Comfortable making decisions with incomplete information
- Do not think of markets as expensive or cheap
- Aggressive with trade size when doing well and modest when not
- Realize the market will be open tomorrow
- Judge their trading success on anything but money
- Study MOB’s & RIOT’s and human psychology – The wisdom of crowds by James Surowiecki, the art of strategy by Avinash Dixt and Barry Nalebuff, Markets Mobs and Mayhem:A modern look at the Madness of Crowds by Robert Menschel, extraordinary popular delusions and the madness of crowds by Charles Mckay.
- See themselves as market makers. Think like a market maker and not just a trader
- Practice reading the right side of the chart, not the left.
- Always have an edge, don’t trade if you don’t
- Determine position size based on risk, not round numbers
- Play reaction, not the news
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