TRADING

 TRADING IS NOT GAMBLING.

 TRADING IS YEARS OF HARDWORK, LEARNING, AND DISCIPLINE. IF YOU
ARE LOOKING FOR A PLACE TO MAKE MONEY EASILY, LOOK ELSEWHERE.
 TRADING IS PURELY A GAME OF PSYCHOLOGY AND DISCIPLINE. NUMBERS
DATA ETC ARE SECONDARY
 NEVER TRADE WITH A PROFIT TARGET IN MIND. TRADE BECAUSE A
TRADE IS THE RIGHT THING TO DO AT THAT POINT OF TIME
 CAPITAL PRESERVATION IS THE ONLY JOB YOU HAVE AS A TRADER. YOU
NEED TO PRESERVE YOUR CAPITAL FOR GREAT TRADES WITH HIGH
PROBABILITY OF HIGH PROFIT. IF YOU LOSE MONEY ON POOR TRADES,
YOU WILL NOT HAVE ANY MONEY TO TAKE THE GREAT ONES
 THERE IS A LIFE OUTSIDE OF TRADING. IT IS EASY TO LOSE SIGHT OF THAT
AND GET ADDICTED TO GAMBLING.

PLANNING
 A TRADE IS NOT JUST UP OR DOWN. IT IS A COMPLETE PLAN
 MOST OF THE TRADING HAPPENS OUTSIDE THE MARKET HOURS. THE
ACTUAL TRADE IS JUST 5% OF THE WORK. DO YOU HOMEWORK AND PLAN
YOUR TRADES AT LEAST THE PREVIOUS DAY. IF SOMETHING SEEMED LIKE
A GOOD IDEA TO YOU THIS MORNING, IT IS OFTEN A BAD IDEA
 KEEP YOUR TRADING PLAN SIMPLE. JUST LOOK AT 3-4 INDICATORS. MORE
NUMBERS EQUALS MORE COMPLICATIONS
TRADE SELECTION

 REMEMBER, THERE IS ALWAYS A NEXT TRADE. DON'T TAKE STUPID RISKS

IN THE CURRENT ONE
 IT IS OKAY TO MISS AN OPPORTUNITY. IT IS NOT OKAY TO LOSE MONEY
BECAUSE OF IMPATIENCE
 NOT HAVING A POSITION IS A POSITION. SOME OF THE BEST TRADES IN
LIFE ARE THE ONES YOU DO NOT TAKE.
 MOST OF THE TIMES THE BEST STRATEGY IS TO SIT AND WATCH ON THE
SIDELINES
 THIS TRADE IS ONE TRADE OF THE MANY TRADES OF A MONTH OF THE
MANY MONTHS OF A YEAR OF THE MANY YEARS OF YOUR TRADING LIFE.
TREAT IT THAT WAY. DO NOT BE ATTACHED TO A TRADE. LEARN TO LET
GO
 IF YOU ARE STUCK IN THE WRONG TRADE, YOU WILL MISS THE RIGHT
TRADE

TREND FOLLOWING

 REVERSAL IN A TREND HAPPENS ONLY ONCE. IF YOU BET ON A REVERSAL

YOU WILL BE RIGHT ONLY ONCE. IF YOU BET ON CONTINUATIONS, YOU
WILL BE RIGHT MOST OF THE TIMES
 NEVER BUY A STOCK BECAUSE ITS PRICE HAS COME DOWN. NEVER SELL
A STOCK BECAUSE IT HAS GONE UP.
 NEVER CATCH FALLING KNIFES. COROLLARY - NEVER SHORT SHOOTING
ROCKETS.
 BUY A TECHNICALLY STRONG STOCK, IDEALLY ON DIPS, AND SELL A
TECHNICALLY WEAK STOCK IDEALLY ON UPTICKS.

BET SIZING

 RISK ONLY WHAT YOU CAN AFFORD TO LOSE. TRADE WITH THE MONEY
YOU CAN THROW AWAY TOMORROW AND FEEL NOTHING ABOUT IT.
 IF YOU CANNOT SLEEP PEACEFULLY WITH A POSITION, YOU NEED TO
SCALE DOWN
 DO NOT HAVE TOO MANY POSITIONS OPEN. YOU WILL NOT BE ABLE TO
MONITOR THEM OR THINK STRAIGHT
 TRADE WITH ENOUGH BUFFER MARGIN. KEEP AT LEAST 30% EXTRA
MARGIN.

STOP LOSSES
 LET YOUR PROFITS RUN, CUT YOUR LOSSES SHORT.
 ALWAYS KEEP A STOPLOSS. YOUR STOPLOSS IS NOT A NUMBER IN YOUR
MIND. IT IS AN ORDER IN YOUR TRADING TERMINAL. KEEP A STOPLOSS AS
SOON AS YOU PLACE THE ORDER.
 HOLDING ON TO A LOSING TRADE IS NOT COURAGE. GETTING OUT OF
THAT TRADE WITH THE BELIEF THAT YOU WILL MAKE IT BACK IN
ANOTHER TRADE IS COURAGE
 NEVER LET A WINNING TRADE BECOME A LOSING TRADE. ALWAYS KEEP
A TRAILING STOP LOSS
NEVER

 NEVER GAMBLE ON EVENTS

 NEVER LISTEN TO SOMEONE ELSE, ESPECIALLY TIPSTERS
 NEVER TRADE WHEN YOU ARE IN AN EMOTIONALLY UNSTABLE PLACE
 NEVER TRADE TO RECOVER LOST MONEY. IT IS EXTREMELY DANGEROUS
 NEVER AVERAGE. AVERAGING IS AN EASY WAY TO MAKE TWICE THE
LOSSES. STAY AWAY FROM IT AS MUCH AS YOU CAN
 NEVER LOOK AT THE MARKETS OR LOOK AT YOUR FLOATING P&L ALL
THE TIME
 NEVER TRY TO CATCH THE TOP OR BOTTOM

GOOD PRACTICES

 ALWAYS LEARN SOMETHING NEW. DO NOT LET A DAY GO BY WITHOUT

LEARNING.
 WRITE DOWN YOUR PLAN AND STICK TO THE PLAN ONCE THE MARKET
STARTS. DO NOT CHANGE YOUR PLAN
 DO A POST-TRADE ANALYSIS - ALWAYS. KEEP A TRADING JOURNAL
 KEEP TAKING BREAKS. IF YOU ARE ALWAYS TRADING, YOU ARE DOING IT
WRONG. AFTER A BIG WIN, COOL OFF AND TAKE A BREAK. AFTER A LOSS,
TAKE A BREAK FOR AT LEAST A DAY OR TWO. AFTER A BIG LOSS, TAKE A
WEEK OFF.
OPTION TRADING

 BUY OPTIONS ONLY IF YOUR MOVE IS QUICK AND BIG

 DO NOT BUY OPTIONS CLOSE TO EXPIRY
 DO NOT PLAY OTM UNLESS YOU ARE D*** SURE ABOUT IT
 OPTION SELLERS WIN IN THE LONG RUN. DO NOT LET ANYONE ELSE TELL
YOU ANYTHING DIFFERENT