In trading there are things that cause you to win in the long term and things that cause you to even lose your account in the short term. There are ways to manage risk and there are ways to purely gamble. There are ways to think that will make you unbeatable in the markets and ways to think that will make you quit rather quickly and give up. You can just take trades based on your opinions or time tested principles that have been proven to work. The below items are all things that you have a choice about. Choose carefully, choose wisely.
A Trader’s 10 Best Friends
- Studying the markets to understand what works. $Study
- You are comfortable with uncertainty. ????
- Being optimistic about winning in the long term. #Winning
- You manage risk very carefully on each trade. #Risk
- Thinking in probabilities. #RiskReward
- Following your trading plan. #Discipline
- Accepting losses. #StopLoss
- Monster Stocks in up trends. $AAPL
- A plan on exactly how you will trade. #TradingPlan
- A robust trading system. #CanSlim
A Trader’s 10 Worst Enemies
- Scared to enter a trade.#Fear
- Feeling the need to be right on every trade. #Pride
- Entering a trade too late or taking profits too soon. #Impatience
- Trading too big a position size. Not taking profits after a reversal. #Greed
- Revenge trading. #Anger
- Randomly entering and exiting trades with no plan or method. #Recklessness
- Wanting to enter and exit perfectly on every trade. #Perfectionism
- The market starts swinging wildly but you don’t change your position sizing. #Volatility
- The trader’s method is to be long in bear markets and short in bull markets. #Contrarian
- The trader just will never admit when he is wrong. #Ego