The 10 Trading Commandments

Discussion in 'Trading' started by Babak, Sep 29, 2001.

  1. Babak

    Babak

    The following is a summary from an excellent article written by Todd Harrison (head trader at hedge fund Cramer Berkowitz) that appeared on realmoney.com on Sunday 23th of September 2001.

    I have only included the 10 'commandments' and will leave you (if you are interested enough) to look up the main article at the site for the whole explanation of each. At realmoney.com you can do a search by author to find the article.

    1. Discipline Trumps Conviction
    2. Opportunities Are Made Up More Easily Than Losses
    3. Emotion Is the Enemy When Trading
    4. Zag When Others Zig
    5. Adapt Your Style to the Market
    6. Maximize Your Reward Relative to Your Risk
    7. Perception Is Reality in the Marketplace
    8. When Unsure, Trade "In Between" [he means smaller]
    9. Respect the Price Action but Never Defer to It
    10. Don't Let Your Bad Trades Turn Into Investments
     
  2. Atlantic

    Atlantic