I’m in a process of cleaning up my MS OneNote books, and deleting heaps of stuff which I thought might help others.
I’m happy to start off with one post, and then perhaps other members can contribute as well. But please do NOT post any TA and systems,
only post trading principles that can be applied irrespective of how one trades so others can use it as reminders, flash cards, etc., to improve themselves.
Lessons from Stock Market Wizards by Jack Schwager (in no order of importance):
- Successful trader use trading methods that suit their personality
- You can't control what the market does, but you can reaction to the market
- To be a winner, you have to be willing to take a loss
- HOPE should never be in your vocabulary
- If you are on a losing streak, reduce your position size
- Don't underestimate the time it takes to succeed as a trader
- Approach trading as a vocation, not a hobby
- Have a business / trading plan
- Be honest about your weakness and DEAL with it
- Know when to do nothing
- Being a great trader is a process. It's a race with no finish line
- Never ever listen to other opinions. Make your own trading decisions
- Analyze your past trades. Study what happened to the stocks after you closed the position
- Don't take on excessive leverage. It only takes one mistake to knock you out of the game
- Great traders continue to learn and adapt
- Don't just stand there and let the truck roll over you
- Being wrong is acceptable, but staying wrong is totally unacceptable
- Contain your losses
- Good traders manage the downside; They don't worry about the upside
- Wall street research reports will tend to be biased
- Knowing when to get out of a position is as important as when to get in
- To excel, you have to put in hard work
- Discipline, Discipline, Discipline!!!
The only limitation in trading is yourself. ~ John Bender ~
JACK SCHWAGER – WINNING METHODS OF THE MARKET WIZARDS
