Universal tips

[prj]

For different markets there are different strategies. What are the universal tips that help you to trade? For me there are
- I'm looking at approximate power of a movement for example, e.g. if it's a relatively strong move I would anticipate the price to gravitate towards that direction and I would think about closing opposing position or opening new
- Putting a stop-loss behind some specific point where a level might be, however it may be obvious
- If the setup is too obvious I would keep myself from entering the trade and vice versa if it's a controversial one and the movement happened I would expect it to go more firmly

 

[ironchef]

Don't forget Kelly.

 

[Sekiyo]

Don't forget Kelly.

Exactly.

It’s all about likelihood and magnitude.
Then size properly. Don’t over bet.
Eliminate risk of ruin.

Buy near a support in a bull market.
Sell near a resistance in a bear market.

In a bull market,
Uptick are more likely,
And the Upside > Downside.

That’s where the edge comes from.

Don’t try to catch tops and bottoms.
Don’t counter trend. It’s slow and concave.

Know what are the risks.
Be convex overall. Look for asymmetries.
Always try to minimize the left tail, the losses.

Get the most of it.
Make the most of it.
Be a tight aggressive.
Only play the best hands.

Capital preservation is key.
Be positioned for the next opportunity.
Lose small when you lose. Do win big some times.

Keep an eye on the next opportunity.
Consider each trade as a loser.
Plan the trade before.

For universalities I’d read Taleb and Thorpe.