Trading Lessons from Best Traders

on Friday, November 28, 2014
1. All successful traders use methods that suit their personality; You are neither Warren Buffet nor George Soros nor Jesse Livermore; Don’t assume you can trade like them. 
2. What the market does is beyond your control; Your reaction to the market, however, is not beyond your control. Indeed, its the ONLY thing you can control.
3. To be a winner, you have to be willing to take a loss; 
4. HOPE is not a word in the winning Trader’s vocabulary;
5. When you are on a losing streak — and you will eventually find yourself on one — reduce your position size; 
6. Don’t underestimate the time it takes to succeed as a trader — it takes 10 years to become very good at anything;   
7. Trading is a vocation — not a hobby.
8. Have a business/trading plan.
9. Identify your greatest weakness, Be honest — and DEAL with it.
10. There are times when the best thing to do is nothing; Learn to recognize these times.
11. Being a great trader is a process. It’s a race with no finish line. 
12. Other people’s opinions are meaningless to you; Make your own trading decisions.
13. Analyze your past trades. Study what happened to the stocks after you closed the position. Consider your P&L game tapes and go over them. 
14. Excessive leverage can knock you out of the game permanently.
15. The Best traders continue to learn and adapt to changing conditions.
16. Don’t just stand there and let the truck roll over you.
17. Being wrong is acceptable — staying wrong is unforgivable.
18. Contain your losses.
19. Good traders manage the downside; They don’t worry about the upside.
20. Research reports are biased.
21. Knowing when to get out of a position is as important as when to get in.
22. To excel, you have to put in hard work.
23. Discipline, Discipline, Discipline !

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