Thursday, September 13, 2007

Words of Wisdom

-Proper money management is essential at all times.

-Remember, tips are for suckers! Never take tips and never give tips.

-Use a system with rules and don’t break the rules.

-Never buy a stock because it looks cheap compared to its recent high.

-“Stocks are never too high to buy and never too low to sell.” – Jesse Livermore

-Don’t take losses personally and never blame the market for your mistakes.

-Never average down. Don’t put good money after bad.

-Sell stocks showing losses and keep stocks showing profits.

-The market has two sides; the right side and the wrong side.

-The right side will always show you a profit.

-Stick to your game and keep emotions at bay by believing in yourself and judgments.

-Cut all losses short and quick, don’t allow losses to grow.

-Check your pride at the door and admit when you are wrong, don’t argue with the market.

-Form a plan for each stock that you plan to purchase.

-Develop an exit strategy for each stock before your purchase.

-Perform post analysis on all of your trades.


-Study, Study, Study. Make a goal to look at a certain number of charts each day.


-It is wise to remember that you are not competing against other traders. You are competing against yourself. If you are not at the top of your game when you play, the probability that you will beat yourself increases.


- In almost any other profession there is a range of performance across all participants. Not everyone in a profession is a top performer, but in most professions you can earn a paycheck without being a top performer.


-The trader who tries to do it all, all the time, is the one who will make a mistake. Don’t be that trader. Know when to take a break.


-We hope for consistent positive results, but until we discover our personal winning trade method, we will have losses.

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