Thursday, October 31, 2019

Trading / Investing Tips

  • Fundamentals tell you what to buy. Technicals tell you when to buy.
  • Stick to your system of entry and stops religiously.
  • Use stops and stick to them.
  • When euphoria kicks in, that’s usually a local top.
  • Much of the trading-related news & social media troll boxes are noise. Ignore them.
  • Trades should end in 3 ways: Big Win, Small Win, Small Loss
  • Repeat after me. “The trend is my friend.”
  • Don’t scalp the counter-trend.
  • Keep a trading journal. Determine flaws. Eliminate them.
  • If you open a trade based on a high time-frame signal, don’t self-sabotage and close that trade based on a much lower time-frame signal.
  • Good sleep, proper diet & exercise are just as important for trading as they are for most things in life.
  • Don’t get chopped up trying to trade/scalp sideways price.
  • Expect consolidation after large price movements, not continued volatility.
  • All indicators are using the left side of the chart to try and predict the right side of the chart.
  • Chart the exchange with the most volume.
  • Most traders lose a significant number of trades when starting. Those who are most successful are persistent.
  • Trade your own account. Don’t let others trade it for you.
  • Agree with the ideas, not the people who supply them.
  • Don’t be married to any one asset class, position, or idea. Constantly reevaluate for flaws.
  • If you’re winning a lot, someone else is losing more.
  • A big loss will ALWAYS be more emotional than a big win.
  • You need a large sample size to determine if you are a winner or a loser. Variance happens to everyone.
  • No one strategy is a holy grail. Use multiple signals and find confluence prior to entry/exit. Use what you like and toss the right.
  • Trading tools can get sharper or duller. Don’t be afraid to brush up on concepts you’ve already mastered.
  • Look at everything as a number and not money. Always look to be increasing that number.
  • Start trading using high leverage and small position sizes. This tests the quality of your entries.
  • Fear, uncertainty, and doubt (FUD) are great drivers for panic buying and selling.
  • After a big winning or losing trade, step away and regather your emotions.
  • If you’re getting emotional in a losing trade, then your position size is too high.
  • Stop trying to rationalize everything. Trade the chart that is in front of you.
  • There will always be early bears and early bulls. Being right is more important than being early.
  • Zoom out first. Zoom in later.
  • On the way up, stocks look cheap. On the way down, they look expensive. Don’t let the market play with your mind. Stick to your trading plan.

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