- You cannot control which stock on your watch-list is going to breakout so try not to have any biases.
- You cannot control the outcome of a trade, but you can control your entry, stop, and size, focus on what you can control.
- You are going to be wrong 50% of the time; you must know that, and if you do know it then you must accept it. No matter how much you think you know or how much more data you are in-taking you will more than likely still be wrong 50% of the time. More knowledge does not make you a better trader. Learn to accept losses. (See videos below)
- If you don’t learn how to accept losses you will revenge trade, you will hold on to stocks hoping they will comeback, you will buy a stock based on technicals and when the stock goes down you will find yourself searching for news to hold on to it. Accept the loss.
- A good set up is a good set up regardless of the outcome of the trade.
- A gain on a trade does not mean that it was a good set up. Lately this bull market has forgiving many sins that give traders a false sense of talent. In a bull market all of your sins are forgiving, don’t you ever forget that.
- Don’t fret about missing a trade, set ups come and go like buses.
- 80% of your gains will likely come in a stretch of 3 months. Know your process, have faith in it, and accept the fact that it will not work 12 months out of the year. Don’t jump from strategy to strategy just because your process is currently in the winter months.
- Sometimes you are going to sell early and wish you would’ve held on, other times you will hold on a little bit longer and wish you would’ve sold early- -this is just part of the game.
- Price targets for the most part are useless.