There are young people in the market that are really bad traders and there is also old traders that are very good, but there are no old bad traders in the market because they went broke and gave up a long time ago.
You might be a bad trader if……….
…your primary method is to try to call tops and pick bottoms.
“Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars.” -Bernard Baruch
You might be a bad trader if……….
…instead of benefiting from the 200 point run in Apple this year you actually lost money by fighting the trend.
“Cardinal Rule #1 is to sell short only during what you believe is a developing bear market, not a bull market.” -William O’Neil
You might be a bad trader if……….
…you risk so much on each trade that only a few bad trades in a row could ruin your account.
By risking 1%, I am indifferent to any individual trade. Keeping your risk small and constant is absolutely critical.” Larry Hite
You might be a bad trader if……….
…you want to prove you are right more than you want to make money.
“Trading is not about being right. It is about putting money into the account. That’s it. Everything else is secondary.” –Ned Davis
You might be a bad trader if……….
…you buy junk stocks thinking they are a great price and short the best stocks in the market believing they are over priced.
“Forget the adage buy low and sell high (it’s “completely wrong,” he writes) and stop looking for bargains. “What seems too high in price and risky to the majority usually goes higher and what seems low and cheap usually goes lower.” -William O’Neil