READ BEFORE YOU START TRADING

23 RULES TO GET STARTED

TRADING WISDOM


1) Buy from the scared, sell to the greedy.

2) Successful traders are quick to change their minds and have little pride of opinion.

3) I made my money because I always got out too soon. (Bernard Baruch)

4) Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars. (Bernard Baruch)

5) Throughout all my years of investing, I have found that the big money was never made in the buying or the selling. The big money was made in the waiting. (Jesse Livermore)

 6) The faster a stock has climbed, the quicker it will fall.

 7) The more certain the crowd is, the surer it is to be wrong. (Menschel)

8) Bear markets begin in good times. Bull markets begin in bad times

9) Never confuse genius with a bull market.

10) Always sell what shows you a loss and keep what shows you a profit

11) Loss of opportunity is preferable to loss of capital.

12) Buy the pain, not gain.

13) Picking safe, readable, and ultimately high probability trades is the way to go

14) Use logical profit objectives for all positions. Know your exits and stick to them

15) Markets are squirrelly animals – make your trading plans ahead of the market

16) Don’t buy new highs or sell new lows – wait for the market to come to you. Buy retracements. If you miss the train, don’t beat yourself up – another one will come by shortly

17) Above all, follow your own trading plan and no one else’s

18) Trade quietly – with the exception of a mentor, tell no one about your positions, profits, or losses. This is especially true for those who are close to you, like your wife, husband, or friends. This self-gratification process or sharing process will put you under psychological pressure to win on every trade and can be a primary reason for failure to follow your plan

19) Don’t carry a sizeable position when traveling. The market will always catch you off guard at the most inopportune time

20) You are only one trade from humility. A swelled head does not belong on a trader’s shoulders

21) Add to your knowledge before attempting to add to your wallet. Newbie traders think they can become pros with little more than a computer and hope. In this business, hope is a four letter word. Show me a humble trader, and I’ll show you someone ready to learn

22) Develop your sense of humor – you’ll definitely need it

23) Help other traders whenever you can. This is more practical than philosophical – giving keeps the ego in line and when you need help, and you will, you’ll find it.


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