OT - gift to the readers. FWIWThe following is something I've been putting together to help myself through the learning curve which this game of investing seems to require of every participant. Some of the rules appear to overlap, I am not finished optimizing it yet. It is a work in progress, it may never be finished. Some of the text wording applies only to my views, and situation, although I have made adjustments to post it. I have removed some of my thoughts, my writing on each point. I debated posting it. Take only what benefits you and make your own way. The list is presently in no particular order since I deem all of the rules to have equal value. No I have not yet followed all of them for any extended period of time, myself. I have heard it said, "beginning is half done". I'm half done.
----- Discipline ------
You, must attain discipline if you ever hope to achieve any level of trading/investing success. Discipline must be practiced 100% of the time, on every trade, every day the market is open.
Review the following rules of discipline daily. You must condition yourself to do the right thing over and over again.
Rule # Discipline
1. The Market pays you in direct proportion to the discipline you excursive.
2. Be disciplined every day, every trade and the Market will reward you in time. Don't claim to be disciplined if you're not 100% of the time. Perfect discipline, is following the rules of your trading method perfectly.
3. Always lower your trade size when you're trading poorly.
4. Never turn a winner into a loser.
5. Your biggest loser can't exceed your biggest winner.
6. Develop a methodology and stick with it. Don't change methodologies often if ever. The methodology is based on sound observance of market behaviour.
7. As much as you study the market, study yourself, Work within yourself. This game is much more about human emotions than it is about companies, or products.
8. You always want to be able to come back and play again.
9. Earn the right to trade bigger size.
10. Get out of your losers.
11. The first loss is the best loss. It's almost always the smallest.
12. Don't hope and pray. If you do, you will lose.
13. Don't worry about news, or what you hear in the media. Their focus is history, your focus is risk control.
14. Don't speculate. If you do, you will lose.
15. Manage your emotions, to permit the loss of money. Small losses should have no effect on you. Losing is necessary to win.
16 If your trade is not working according to your method, it's time to exit. Determine the stop loss point before entering the position.
17. Never take a big loss. Only a big loss can hurt you. This is a source of great trouble for those who have experience in the market. Past big loses have made a mess of your mind, and emotions. Prevent this one thing, going forward, begin now.
18. Make a little bit as often as possible as determined by your method.
19. Aim to hit singles, not home runs.
20. Consistency builds confidence and control.
21. Learn to scale out of your winners. Over come greed.
22. Make the same type of trades over and over again. Become an expert at one method.
23. Don't over analyze. Don't procrastinate. Don't hesitate. If you do, you will lose.
24. All traders are created equal in the eyes of the market. Your actions determine your results, other peoples actions should not affect you.
25. The Market is benign. Stop fighting her, she is not your enemy, work with her, and work on yourself. You only determine your results.
26. Rest but never quit.....
eagleman ( Have a merry one, and stay safe a lot of people are counting on you sticking around!
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