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Top Ten Things Traders Must Change to Survive

  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.