Something a trader should never do

Discussion in 'Trading' started by OddTrader, Feb 11, 2015.

  1. What are the things that a trader should not do or never do? (Other than: Don't lose All money!)

    Proverb, reality, case, you know, you learn, you hear, your experience, truth, untruth, law, theory, ...
     
  2. dbphoenix

    dbphoenix

    Trade without a thoroughly-tested, consistently-profitable trading plan.
     
  3. Andiroo

    Andiroo

    Never add to a losing trade is a common rule...
     
    JTrades likes this.
  4. JTrades

    JTrades

    A trader should never...

    ignore what the market is telling him / her.
     
  5. lindq

    lindq


    Don't chase price. If you've missed the entry, let it go and take a walk.
     
    JTrades likes this.
  6. garachen

    garachen

    Have over 1,000 posts in a trading forum where the most active threads are people talking in circles.
     
    londonkid likes this.
  7. NoDoji

    NoDoji

    Say "Never".
     
    ranpo and loyek590 like this.
  8. Redneck

    Redneck

    Taken me my entire trading career..., to date..., to figure out; "things that a trader should not do or never to do"

    And I'm still learning / discovering them

    Would take me nearly as long to write em all down (again)

    RN
     
  9. Don't trust anybody; the broker encouraging you to trade more, the trainer peddling an expensive course or the author with a system that allegedly worked for them but might not be right for you.

    Never overestimate your intelligence and skill.

    Never overestimate your likely Sharpe Ratio. Treat back-tests with several pinches of salt.

    Don't assume you'll be lucky. Assume you won't be and plan accordingly.

    Don't try anything too clever or overcomplicated.

    Don't trade mindlessly. Don't be the guy caught short when the SNB released the peg.

    Don't make too many trades. Don't make your broker rich(er).

    Don't be too aggressive with position sizes. Know you risk. Only commit capital you can afford to lose.

    Don't relax. At some point something in your portfolio will go wrong, in a way you didn't expect. Limit your exposure by diversifying, and keeping risk within limits.

    Don't meddle. Find a strategy that works for you and stick to it consistently. Don't be tempted to 'improve' it.
     
  10. WWarrior

    WWarrior

    think the market was wrong or stupid because it went against you

    think you can't understand the market way beyond indicators and lines because somebody says so on a forum
     
    #10     Feb 12, 2015