Hi traders, If you somehow knew that soon you would fall off of your roof and bang your head hard enough to give yourself amnesia, and you had the choice to remember only 3 things about trading, what would they be?
1. Cut your losses short and let your profits run (trading psychology).
2. Trade setups that yield positive expectations.
3. Apply proper money management to those setups.
Now go find all the edcuation you could and study them to the point where you make them your second nature. And one more thing: traders that are sharp and consistently profitable don't waste time and dwell on negative thoughts.
"Plan Your Trade and Trade Your Plan"
1. Don't Lose $
2. Risk Management (Defined Entry, Defined Stop)
3. Buy Strong Stocks on Pullbacks
I've spent the last year developing my trading style and plan. It it my observation through countless traderinterviews, books such as Market Wizards, the New Market Wizards, Reminisciences of a Stock Operator and talking with other traders that if you can master these three things then the rest is easy. I believe trading is 90% mental and 10% skill. Once you can get the mental aspect down your set. The #1 quality a trader needs to have is DISCIPLINE, refering back to my ideology, PLAN YOUR TRADE, TRADE YOUR PLAN. Practice makes perfect, having a plan, outline, a framework if you will for any situation will help keep the emotion out of the trade and the objectivity in it. Take from this what you will as I am only 20 years, but discipline has taken me the distance to become a NON LOOSING trader. One I began to focus on how NOT TO LOOSE and thinking about the worst case scenario "how could this perfect trade go wrong", I began to make money consistently and profitably.
Here is a great link to some audio commentary on discipline and exerpts from Market Wizards and Japenese Candlestick Charting Techniques, just disregard the plugs for thinkorswim, although I do agree that is the best platform both on a technical and customer service level on the market today.
Comments
2. Trade setups that yield positive expectations.
3. Apply proper money management to those setups.
Now go find all the edcuation you could and study them to the point where you make them your second nature. And one more thing: traders that are sharp and consistently profitable don't waste time and dwell on negative thoughts.
1. Don't Lose $
2. Risk Management (Defined Entry, Defined Stop)
3. Buy Strong Stocks on Pullbacks
I've spent the last year developing my trading style and plan. It it my observation through countless traderinterviews, books such as Market Wizards, the New Market Wizards, Reminisciences of a Stock Operator and talking with other traders that if you can master these three things then the rest is easy. I believe trading is 90% mental and 10% skill. Once you can get the mental aspect down your set. The #1 quality a trader needs to have is DISCIPLINE, refering back to my ideology, PLAN YOUR TRADE, TRADE YOUR PLAN. Practice makes perfect, having a plan, outline, a framework if you will for any situation will help keep the emotion out of the trade and the objectivity in it. Take from this what you will as I am only 20 years, but discipline has taken me the distance to become a NON LOOSING trader. One I began to focus on how NOT TO LOOSE and thinking about the worst case scenario "how could this perfect trade go wrong", I began to make money consistently and profitably.
Here is a great link to some audio commentary on discipline and exerpts from Market Wizards and Japenese Candlestick Charting Techniques, just disregard the plugs for thinkorswim, although I do agree that is the best platform both on a technical and customer service level on the market today.