“Everyone wants to feel like a winner. It’s tempting to pat ourselves on the back for making a winning trade, but it’s essential to face the facts: Many times a winning trade is a combination of an astute insight AND being at the right place at the right time. In other words, external circumstances such as plain good luck make you a winner. (more…)
1)Nobody is bigger than the market.
1. Need to internalize lots of trading simulation of specific set-ups in real-time to trade effortlessly
2. Need to trust money management system to weather +10 losses in a row
3. Tuff to internalize that its the 5-6 huge monthly runners that is the big pay-off days
4. Must master +3 trade set-ups to make money consistently month to month.
5. It takes considerable time to mathematically think and act like a trader
6. Trading is a performance skill which requires mastery of every element of trading
7. It requires time capital and considerable effort to achieve the experience to make it effortless and automatic
8. It takes several attempts at different trading methodology to sync with a trader’s personality and cognitive strengths
9. It takes time to set and internalize specific rules that embed a sense of mastery
10. To survive in trading requires weathering the lengthy learning curve
“So far in 2009, what are the the most important thing I had learned about investing, trading, and/or the markets?”
Success takes longer than expected
- That you must learn to trade and trust yourself and not to become so dependent on the opinions of others, which ultimately keeps you from becoming the best you can be
- Keep it simple
- The very best profit opportunities occur in the midst of extreme emotional sentiment
- Always think opportunistic verses too bullish or bearish
- Persistence and dedication to a daily routine is key
- Developing an edge is the first step for trading successfully. Without that, disciplined trading will only make sure you gradually losing money
- The market is one unforgiving bitch!
- It is challenging to find non-correlated markets
- You have to respect the market even if you think it is under some kind of manipulation
- Keep your eyes open and powder dry
- If you fall in love with a stock keep 100 shares and let the rest go
- I’ve learned to be patient in waiting for my patterns to appear
- The value of ETFs
- The importance of finding special situations that will be profitable no matter what the market does
- Stay away from light volume when the only thing trading is the black boxes
- The importance of focusing only on one technical setup in order to improve one’s skill set
- I now think that buy and hold is a serious mistake
- Think big and think long term
- Don’t try to predict the markets
- Don’t be afraid in bear markets, just another opportunity
- The odds are stacked against the retail investor
- There’s no such thing as a sure thing
- The harder I work at it the more likely I am to succeed
- Conserving one’s capital is vital
- I know the rules – I just need to notch-up my discipline
- Smaller entry positions can be helpful
- Opportunities are everywhere
- The market is primarily psychologically driven
- Trade with the trend instead of trying to pick tops and bottoms
- Know where and when to get out before you get in
- As Johny Cash put it “You got to walk that lonesome valley, you got walk it by yourself. Nobody else can walk it for you. You got to walk it by yourself.”
- The difficulty of avoiding over-optimization/curve fitting
- Overtrading can be, and often is, a recipe for disaster
- To breathe before executing a trade
- Trading is not a profession for pessimists
- Never feel confident even when winning. Humility is a good thing
- You need to be quick and brutal with the trading decisions
- It is okay to sit out a potential move – risk management over reward chasing
- Don’t bet the farm in either direction
- There is no consistent logic to trading the market
- Some trades need to be taken when they appear, not just when you are ready
- There’s no rule that quality stocks must go up
- Don’t chase any overbought stocks
- When a sector (like financials) look so hopeless as it did in March there is potential to make a lot of money if things turn around even just a little
- Hope is a four-letter word and has no place in a trading strategy
- Patience. It is ok to sit out once in awhile
- Wait until you have an proven strategy supported by data before trading for keeps
Anything can happen. Trading is all about probabilities
Technically Yours-ANIRUDH SETHI ,BARODA ,INDIA
Treat trading like the Ocean in which you’re just trying to catch a couple of good waves not conquering it.
One thing that I couldn’t accept as an attorney (for the five minutes I seriously considered that as a profession) was that I’d be confronted with the temptation to make money from projects and clients with whom I did not want to work. The wealth that is created from doing a law-job is wealth that comes from the support of, allegiance to, and active promotion of a client’s business. (more…)
MISTAKE ONE
Lack of Knowledge and No Plan
It amazes us that some people expect to trade the stock market successfully without any effort. Yet if they want to take up golf, for example, they will happily take some lessons or at least read a book before heading out onto the course. (more…)
