I learn better by writing it. I am typing the list of "Wizard Lessons" from Jack D. Scvhwager's book Stock Market Wizards for anyone who finds it useful. I may rephrase it to make it shorter.
1. There is no single true path
2. The Universal Trait: strategy+plan covering all contingencies; stick to the plan
3. Trade your personality
4. Failure and perseverance
5. Flexible
6. it takes time
7. record your observations
8. a trading philosophy
9. an edge
10. confidence
11. hard work
12. Obsessive
13. an innovator
14. take a loss to win
15. risk control: stop-loss, smaller position, low-risk position, small initial position, diversify, short, hedge.
16. willing to risk
17. focusing on undervalued
18. value alone is not enough
19. catalysts
20. exit on stop-loss, profit, time, violation of trade premise, unexpected, portfolio considerations.
21. Get out if market does not comfirm expectation
22. Liquidate for better oppertunity
23. patience
24. goals
25. "This time is different" always wrong
26. bullish/bearish relative to price
27. do not predict
28. Trust no-one/nothing; verify
29. Never listen to other opinions
30. Beware of Ego
31. Self-Awareness
32. No emotion
33. Personsal Problems are cautionary flag
34. review past trades
35. never mind looking stupid
36. danger of leverage
37. position sizing
38. complexity is not equal to success
39. Trading is a vocation, not a hobby
40. need a plan
41. define h-probability trades.
42. low-risk opportunities
43. have good reason for any trade
44. common sense
45. trade the hard to fill
46. Do not refrain from a trade only because you missed a better fill
47. Do not hold a losing position
48. Need not all-or-nothing trading(scale)
49. pa response to news
50. insider buying
51. big boy holdings
52. get out when hoping
53. diversification is not necessarily a virtue
54. data mining caution
55. synergy+marginal indicators
56. persistent condition engender persistent performance
57. no popularity contest
58. two-sided coin is fair; long/short are not.
59. shorting to hedge
60. shorting loss is unlimited
61. shorting candidates: high receivables, change accountants, high turn-over cfo's, blaming shorting, change core business, high p/e, vulnerable catalyst, uptrend stalled/reversed
62. Use options to express stock's expectation
63. sell otm puts for to be longed stocks
64. research reports tend to be biased
65. the universality of success.
1. There is no single true path
2. The Universal Trait: strategy+plan covering all contingencies; stick to the plan
3. Trade your personality
4. Failure and perseverance
5. Flexible
6. it takes time
7. record your observations
8. a trading philosophy
9. an edge
10. confidence
11. hard work
12. Obsessive
13. an innovator
14. take a loss to win
15. risk control: stop-loss, smaller position, low-risk position, small initial position, diversify, short, hedge.
16. willing to risk
17. focusing on undervalued
18. value alone is not enough
19. catalysts
20. exit on stop-loss, profit, time, violation of trade premise, unexpected, portfolio considerations.
21. Get out if market does not comfirm expectation
22. Liquidate for better oppertunity
23. patience
24. goals
25. "This time is different" always wrong
26. bullish/bearish relative to price
27. do not predict
28. Trust no-one/nothing; verify
29. Never listen to other opinions
30. Beware of Ego
31. Self-Awareness
32. No emotion
33. Personsal Problems are cautionary flag
34. review past trades
35. never mind looking stupid
36. danger of leverage
37. position sizing
38. complexity is not equal to success
39. Trading is a vocation, not a hobby
40. need a plan
41. define h-probability trades.
42. low-risk opportunities
43. have good reason for any trade
44. common sense
45. trade the hard to fill
46. Do not refrain from a trade only because you missed a better fill
47. Do not hold a losing position
48. Need not all-or-nothing trading(scale)
49. pa response to news
50. insider buying
51. big boy holdings
52. get out when hoping
53. diversification is not necessarily a virtue
54. data mining caution
55. synergy+marginal indicators
56. persistent condition engender persistent performance
57. no popularity contest
58. two-sided coin is fair; long/short are not.
59. shorting to hedge
60. shorting loss is unlimited
61. shorting candidates: high receivables, change accountants, high turn-over cfo's, blaming shorting, change core business, high p/e, vulnerable catalyst, uptrend stalled/reversed
62. Use options to express stock's expectation
63. sell otm puts for to be longed stocks
64. research reports tend to be biased
65. the universality of success.
