A couple more... 1. IF A TRADER DOES NOT UNDERSTAND WHAT HAPPENS TO HIM PSYCHOLOGICALLY WHILE IN A TRADE, HE IS DOOMED TO LOSE UNTIL HE DOES OR HE RUNS OUT OF MONEY. 2. THE MARKET PAYS YOU TO BE DISCIPLINED. 3. BE DISCIPLINED EVERY DAY, EVERY TRADE AND THE MARKET WILL REWARD YOU. 4. ALWAYS LOWER YOUR TRADE SIZE WHEN YOUâRE TRADING POORLY. 5. NEVER TURN A WINNER INTO A LOSER. 6. YOU'RE BIGGEST LOSER CANNOT EXCEED YOUR BIGGEST WINNER. 7. DEVELOP A METHODOLOGY AND STICK WITH IT. 8. BE YOURSELF. DON'T TRY TO BE SOMEONE ELSE. 9. YOU ALWAYS WANT TO BE ABLE TO COME BACK AND PLAY THE NEXT DAY. 10. EARN THE RIGHT TO TRADE BIGGER. 11. GET OUT OF YOUR LOSERS. 12. THE FIRST LOSS IS THE BEST LOSS. 13. DON'T HOPE AND PRAY. 14. DON'T SPECULATE. 15. NEVER TAKE A BIG LOSS. 16. HIT SINGLES NOT HOME RUNS. 17. CONSISTENCY BUILDS CONFIDENCE. 18. LEARN TO SWEAT OUT YOUR WINNERS. 19. MAKE THE SAME TYPES OF TRADES OVER AND OVER AGAIN. 20. BE A BRICKLAYER. 21. DON'T OVER ANALYZE. 22. ALL TRADERS ARE EQUAL IN THE EYES OF THE MARKET. 23. IT'S THE MARKET ITSELF. 24. ITâS BORING. ITâS A JOB. PATIENCE. 25. 70% OF THE MONEY FLOWING COMES FROM INSTITUTIONAL INVESTORS. 26. STRONG VOLUME IS 150% OF NORMAL VOLUME. 27. TRADE WHAT YOU SEE, NOT WHAT YOU THINK.
To be successful, a day-trader must have the discipline of a machine, the instincts of a fox, the emotions of a rock, the skills of a surgeon and the patience of a saint. (And a little luck wouldn't hurt either.) The market does not know where your stops are unless you are doing size. Clearly, the ability to take a loss by the end of the day likely may be the salvation of many traders because the vast majority cannot take their losses when required to do so by their system(s), assuming, of course, they even have a system! Ninety percent of all the trading problems I observe are due to two factors: overtrading (assuming opportunity where there is none) and failure to accurately identify what the market is doing. Both are liabilities of subjective trading styles. If you know that a sizable proportion of market participants operate with such subjective biases, it should be possible to define trading systems/methods that exploit such tendencies. There are enough good trade opportunies around. Just keep your capital intact until the "sitters" come along, then make a controlled bet and rake in the chips. Just realize what is going on and adjust to it. Realize the market is not rationale and there are people screwing around all the time with the price. So through my own internal dialogue. I have now come up with two of the reasons I feel most people end up losing. A) They focus on the end result rather than the proccess that leads to it and B) they don't truly respect the risk that is associated with the market. ----------------- I've got many more taken over the years from fellow ET posters so the credit goes to them or whoever they quoted.
http://www.hardrightedge.com/wheel/tcrules1.htm 1. Forget the news, remember the chart. You're not smart enough to know how news will affect price. The chart already knows the news is coming. 2. Buy the first pullback from a new high. Sell the first pullback from a new low. There's always a crowd that missed the first boat. 3. Buy at support, sell at resistance. Everyone sees the same thing and they're all just waiting to jump in the pool. 4. Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover. 5. Don't buy up into a major moving average or sell down into one. See #3. 6. Don't chase momentum if you can't find the exit. Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble. 7. Exhaustion gaps get filled. Breakaway and continuation gaps don't. The old traders' wisdom is a lie. Trade in the direction of gap support whenever you can. 8. Trends test the point of last support/resistance. Enter here even if it hurts. 9. Trade with the TICK not against it. Don't be a hero. Go with the money flow. 10. If you have to look, it isn't there. Forget your college degree and trust your instincts. 11. Sell the second high, buy the second low. After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try. 12. The trend is your friend in the last hour. As volume cranks up at 3:00pm don't expect anyone to change the channel. 13. Avoid the open. They see YOU coming sucker 14. 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two lower highs and a double bottom. 15. Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it. 16. Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again. 17. Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action. 18. Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers. 19. Bottoms take longer to form than tops. Fear acts more quickly than greed and causes stocks to drop from their own weight. 20. Beat the crowd in and out the door. You have to take their money before they take yours, period.
I'm not that smart...but Don't Rule 3 and 8 contradict each other ? 3. Buy at support, sell at resistance. Everyone sees the same thing and they're all just waiting to jump in the pool. 8. Trends test the point of last support/resistance. Enter here even if it hurts.
"10. If you have to look, it isn't there. Forget your college degree and trust your instincts." That's my favorite. Collect a broad base of knowledge/info. Watch and wait for the bells and whistles to go off in your head, quite the contrary of "looking for it". There are times when things just don't look right, that's the time to take action. Looking to see what I can see often times turns up nothing. Too often (just my opinion) we are conditioned by consumerism. "Hey. I got some money let's go shopping". The weekend is here, people look for trades over the weekend and "think I'll go shopping on Monday" or they'll ask on the mb "What looks good for monday?" mentality is not very productive.
i was 16 years old working my first job at yes you guessed it mcdonalds. manager looks at me standing there doing nothing. he comes over and says. ' if you got time to lean you got time to clean.' i told him to fuck off and left there and then.
' if you got time to lean you got time to clean.' i told him to fuck off and left there and then. ************************ Two motivational quotes at once.
Are you a F*in moron? You're a F*in moron... why are you such a F*in moron? You stupid F*in bastard! :eek: