Seeing an opportunity and acting upon it are two different things.
• Price has memory. Odds are what price did the last time it hit a certain level will be repeated . . .
• Pay attention to price action, regardless of what the charts are saying.
• Look for a reversal at the same place you’re expecting a breakout or breakdown.
• Price action sets up against the majority; the best profits are often in the opposite direction of the way you’re planning to go.
• Add to your winners and cut your losers. ’nuff said.
• Opportunities come along all of the time. Wait for the best ones.
• Don’t overly anticipate or see things that aren’t there. Wait for your signals.
• The day isn’t over until the closing bell ring. The way it ends may be vastly different from how it begins.
• Your first job isn’t to make money. It’s to protect capital.
• Don’t rush to buy the lowest price or sell the highest price; It could get much lower or much higher before turning around. (more…)