|
|
- When the market is going up, say "the market is going up." When the market is going down, say "the market is going down." Say it without qualifications, no "buts" attached. This is a reality check, you'll be amazed at how hard it is to say what is literally going on in front of you when your mind is full of preconceived opinions.
- THE DAILY MARKET COMMENTARY: I've never had an opinion I didn't like, however, successful day trading requires flexibility. Do your homework not to develop a market opinion, but rather to understand the potential for both sides of the market. This will allow you to make your trades based on what the market is doing at the time of the trade.
- Never add to a losing position.
- Always determine a stop and a profit objective before entering a trade. Place stops based on market information, not your account balance. If a "proper" stop is too expensive, don't do the trade.
- Remember the "power of a position." Never make a market judgment when you have a position.
- Your decision to exit a trade means you perceive changing circumstances. Don't suddenly think you can pick a price, exit at the market.
- Never trade when you are sick.
- Size kills. Only change your unit of trading under a plan of attained goals. Also, have a plan for reducing size when your trading is cold or market volume is down.
- Confidence kills. Remember, you really don't know anything. Respect the market every second of every day. Expect the unexpected. Always know your position and exit your trade immediately whenever you feel uneasy.
- Measure yourself by profitable "days in a row," not by individual trades.
- The best way to break a streak of "losing days in a row" is to not trade for a day.
- Don't stop trading when your on a winning streak. "When your hot, your hot."
- Three strikes and your out! Don't turn three losing trades in a row into six in a row. When you’re off, turn off the screen, do something else. "When you’re not, you’re not."
- When you make a mistake of discipline, whine like a fool to anyone that will listen. Errors in discipline are mistakes you will keep on making for many years. Wearing ashes and sack cloth may help extend the time before you do it again.
- If you squirmed and moaned while you read this list, then you share two obvious characteristics with many of us:
A. You have traded long enough to recognize that you (not the market) make mistakes, and you try to overcome them.
B. Now this is ugly, you have become part of the market and you can never leave.
No matter where life takes you, you will always check the market and always want to continue being a part of it. It's like that first true love, it will always be there no matter what the distance, no matter whether they are alive or dead.
|
|