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Top Ten Things Traders Must Change to Survive

  
  Education
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  1. When the market goes from bull to bear, or from an uptrend to a down trend you must change from going long to going to cash or selling short.
  2. When a market recovers from a bear market to an uptrend over taking the 200 day moving average you must go from bearish or neutral to long.
  3. New bull markets most of the time have new leaders you can’t just play the same ones from the last up trend.
  4. When you make a trade and it goes against you, then you were wrong. When your stop is hit you must change your position and get out.
  5. When you have a strong opinion about a trade but it goes the opposite of what you believe day after day you must change your mind, you were wrong.
  6. When a trade does not go the way you expected in the time frame you had planned you have to take a time stop and change to something that is moving.
  7. Each day you must change and grow as a trader and improve on your skills through continuous learning.
  8. While the market will change the principles of winning through risk management, correct trader psychology, and playing the probabilities will stay the same.
  9. The market rotates and different market capitalizations come into favor and out of favor, follow the money.
  10. Different sectors rotate in and out of favor based on the cash flow of earnings, follow the capital.

DAY TRADING LESSONS

  
  Education
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daytradinglessons-update

  • Trading is a continuous learning process

  • Don’t trade without a plan. Be as prepared as possible. Don’t try to be right
  • Emotion is a much bigger influence in stock prices than any other factor
  • The market reacts more to sentiment than facts. Herd mentality rules
  • Sell into strength and buy into weakness
  • Market always rewards minority, not the crowd. The trick to figure out if the mass perception is wrong and WHEN it will be proved to be wrong.
  • Technical setups and money management are more important than fundamental catalysts when trading
  • Always ask: What beliefs are you acting upon? What is the basis for those beliefs? Why do you have those beliefs now? Would those beliefs be different if your recent gain/loss record had been reversed? Can you clearly enumerate what could happen that would cause you to change your mind?”
  • Extreme emotions cause extreme pain. I’ve learned how not to get overly bullish or bearish
  • Be mindful of higher trading volume on down days prior to a future catalyst as bad news can and often does leaks out
  • Take responsibility for your own trading
  • Cut your losses, let your winners run, and this is more easily said than done
  • If you can’t focus, you can’t trade. Be in the zone or stay sidelined
  • Buy below value and well below value if possible
  • Being flexible can be fruitful
  • Let the market come to me and don’t force trades
  • It is never “different” this time
  • Just more……….very soon ,Till then just read these and learn something new.
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