This action might not be possible to undo. Are you sure you want to continue?
Be data centric in your approach. Take the time and make the
effort to understand what works and what doesn´t. Trading decisions
should be objective and based upon the data.
Be disciplined. The data should guide you in your decisions. This is
the only way to navigate a potentially hostile and fearful environment.
Be flexible. At first glance this would seem to contradict Rule #2;
however, I recognize that markets change and that trading strategies
cannot account for every conceivable factor. Giving yourself some
wiggle room or discretion is ok, but I would not stray too far from the
data or your strategies.
Always question the prevailing dogma. The markets love dogma.
"Prices are above the 50 day moving average¨, "prices are breaking
out¨, and "don´t fight the Fed¨ are some of the most often heard
sayings. But what do they really mean for prices? Make your own
observations and define your own rules. See Rule #1.
Understand your market edge. My edge is my ability to use my
computer to define the price action. I level the playing field by trading
markets and not companies.
Money management. Money management. Money management. It
is so important that it is worth saying three times. There are so few
factors you can control in the markets, but this is one of them. Learn
to exploit it.
Time frame. Know the time frame you are operating on. Don´t let a
trade turn into an investment and don´t trade yourself out of an
Confidence and conviction. Believe in your strategies and bet
wisely but with conviction. There is nothing more frustrating than
having a good strategy work as you expect, yet at the end of the day,
you have very little winnings to show for your efforts.
Persistence. It takes persistence to operate in the markets. Success
doesn´t come easy, and if it does, then I would be careful. Even the
best strategies come with losses, and they always seem to come when
you get the nerve to make the big bet. Stay with your plan. If you
have done your home work, the winning trades will follow.
Passion. In the end, trading has to be about your bottom line, but
you have to love what you do and no amount of money is worth it if
you aren´t passionate about the process. No matter how much
success you enjoy, in the markets you can never stop learning.
Take care of yourself. No amount of money is worth it if your health
is failing or you have managed to alienate yourself from family and
friends in the process.