I’m in a process of cleaning up my MS OneNote books, and deleting heaps of stuff which I thought might help others. I’m happy to start off with one post, and then perhaps other members can contribute as well. But please do NOT post any TA and systems, only post trading principles that can be applied irrespective of how one trades so others can use it as reminders, flash cards, etc., to improve themselves. Lessons from Stock Market Wizards by Jack Schwager (in no order of importance): Successful trader use trading methods that suit their personality You can't control what the market does, but you can reaction to the market To be a winner, you have to be willing to take a loss HOPE should never be in your vocabulary If you are on a losing streak, reduce your position size Don't underestimate the time it takes to succeed as a trader Approach trading as a vocation, not a hobby Have a business / trading plan Be honest about your weakness and DEAL with it Know when to do nothing Being a great trader is a process. It's a race with no finish line Never ever listen to other opinions. Make your own trading decisions Analyze your past trades. Study what happened to the stocks after you closed the position Don't take on excessive leverage. It only takes one mistake to knock you out of the game Great traders continue to learn and adapt Don't just stand there and let the truck roll over you Being wrong is acceptable, but staying wrong is totally unacceptable Contain your losses Good traders manage the downside; They don't worry about the upside Wall street research reports will tend to be biased Knowing when to get out of a position is as important as when to get in To excel, you have to put in hard work Discipline, Discipline, Discipline!!! The only limitation in trading is yourself. ~ John Bender ~ JACK SCHWAGER – WINNING METHODS OF THE MARKET WIZARDS
Psychology/mental is overrated and only 1% of the game. Edge is 99%. Every part of your trading system should be measurable.
Interesting you would mention to exclude "TA". You got a hard-on against that? If so, you got it all wrong. People (traders) are entitled to their own opinions... they are NOT entitled to their own facts.
Few more principles from Jack Schwager People think that trading has to do with some secret TA or system, they think when they find the “formula” they’ll get rich. That’s the wrongful way looking at trading. The world’s most successful traders have complete cynicism about each other’s methods. This shows it can’t get further apart. It tells you there is no single way, there is no single method. If you are looking for that, you don’t have the right question, let alone the right answer. There are millions ways to make money in the market, unfortunately they are all difficult to find. You have to realise is that you have to find “path”, and not “the” path. The first principle is that every trader found a method to fit his personality. It seems logical but it really isn’t. There are traders who have good knack analytically, and could have done really well job putting together systemised approach and trade it, but it was too boring for them, or they would have second guess it, or they would have to be more involved, or it was too slow. You can’t have people constantly doing things that don’t fit their personality. If market wizards would swap their methods, they would absolutely fail. That’s why most people will be doomed to fail trading a system that they’ve bought. Every system will go through a losing period, and if you didn’t develop it to fit your personality, you’re not going to have faith in it the first time it hits a bad period.
You are sooooooo TA sensitive that it hinders your comprehension.... Reread what he wrote..Its not a swipe at TA OR Systems.... He wants to discuss principles of trading.. Cmon Scap!!!!!!!!!!
Isn't the ONLY principle of trading that matters... "get your money on the right side of the play, up or down"? All the rest is what, mental gyrations?
Good Morning PPC, Here is a few of my own quotes. I can never relate to other traders quote cause other traders quote do not work. 1. If you have no trading Edge, just guess and gamble and do your best. Because you can not look for trading edge forever. SimpleMeLike 2. Start low and grow. SimpleMeLike 3. Best to hurry up and get rich then try to be trading forever. SimpleMeLike 4. If I had a trading Edge that made me millions, I will lie to you and never tell you nothing. SimpleMeLike 5. Hurry up and get rich in trading, so you can enjoy life. SimpleMeLike 6. STOP learning more and more about trading, the more you know about trading the poorer you will be come. Less knowledge is the best knowledge SimpleMeLike 7. Sometimes you have to risk the entire account balance, if you really feel you are right and can get the win. Just do not do this often. If you blow up, hurry up and start over again. SimpleMeLike 8. Do not work hard in trading, the harder you work the poorer you become. Find something simple to trade that make sense to you, and go for it. Do not continue working hard. SimpleMeLike