- 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.
Portfolio Return as of 12/31/22:
2022: -.019% (SP500 -18.01%)
Thursday, October 31, 2019
Trading / Investing Tips
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