5 Thoughts for Traders-Must Read

1.  We want all trades to be winners. The foolproof system for trading profits is attractive and the seller of such systems can be convincing, yet the profits are elusive.  The market could care less about our system, a past trading record, or the trading record of the one selling the system.  You do know that the market’s attorney requires that the following be posted in a prominent place…like on our foreheads beside the big L sign!: “Past results are not indicative of future returns.”  By the way, the market says, “you’re doing it wrong”.

2.  We want to add to losers. The last time I checked the only reason we add to a loser is when the discussion is about our weight!  Get on the scales and add up more losing pounds!  Be the BIGGEST LOSER!  The market, however, says the way to tip the scales in our favor is to add to the winners and lighten up on the losers.  To do otherwise is to “do it wrong”.

3.  We want to be right.  Two wrongs don’t make a right in life but in the stock market two wrongs (and plenty more) will help you get on the right road to making money.   The market says the trading game is about making money not about stroking the ego.  The “right” road is the “wrong” road when your on Wall Street.  Hey, if  you doing it to be right, then you’re “doing it wrong!” (more…)

Go to top