My added rules in red.
1. Buying a weak stock is like betting on a slow horse. It is retarded.
(Shorting a strong stock is like betting on a slower horse. It is more retarded.)
2. Stocks are only cheap if they are going higher after you buy them.
3. Never trust a person more than the market. People lie, the market does not.
4. Controlling losers is a must; let your winners run out of control.
(Hang on to a partial position with a stop to increase profits)
5. Simplicity in trading demonstrates wisdom.Complexity is the sign of inexperience.
(Less is more in trading)
6. Have loyalty to your family, your dog, your team. Have no loyalty to your stocks.
7. Emotional traders want to give the disciplined their money.
(Study self-control of emotions and mindfullness. Meditation helps)
8. Trends have counter trends to shake the weak hands out of the market.
9. The market is usually efficient and can not be beat. Exploit inefficiencies.
10. To beat the market, you must have an edge.
(FOCUS on your edge(s), i.e. ideal trading setups/situations)
11. Being wrong is a necessary part of trading profitably. Admit when you are wrong.
12. If you do what everyone is doing you will be average, so goes the definition.
13. Information is only valuable if no one knows about it.
(99% of the time within seconds to minutes almost ALL information has been factored into price)
14. Lower your risk till you sleep like a baby.
(Understand bigger trends before taking size positions overnight)
15. There is always a reason why stocks go up or down, we usually only learn the reason when it is too late.
(Searching for a reason will likely cost you some/all profit)
16. Trades that make a lot of intellectual sense are likely to be losers.
17. You do not have to be right more than you are wrong to make money in the market.
18. Don’t worry about the trades that you miss, there will always be another.
19. Fear is more powerful than greed and so down trends are sharper than up trends.
(The greatest losses occur because you don't act soon enough)
20. Analyze the people, not the stock.
(Analyze the reaction of the news, not the news itself)
21. Trading is a dictators game; you can not trade by committee.
22. The best traders are the ones who do not care about the money.
23. Do not think you are smarter than the market, you are not.
24. For most traders, profits are short term loans from the market.
25. The stock market can not be predicted, we can only play the probabilities.
26. The farther price is from a linear trend, the more likely it is to correct.
27. Learn from your losses, you paid for them.
28. The market is cruel, it gives the test first and the lesson afterward.
29. Trading is simple but it is not easy.
30. The easiest time to make money is when there is a trend.
(Your best trades should always be identified at the beginning of the trend)
© 1 Trader and jcspe85.blog.com, 2016
