Trading Lessons from Best Traders

By | November 28, 2014

1. All successful traders use methods that suit their personality; You are neither Waren Buffett 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 !

3 thoughts on “Trading Lessons from Best Traders

  1. bob

    oh it is very good for any stock trader be it intraday or positional trader.
    Thanks Brameshji
    bob

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