- To be a great trader, you must be open-minded and flexible when new technical information emerges. Throw your opinions out the window.
- Breakouts will continue to work most of the time in a bull market because human emotions don’t change.
- Accumulation and distribution are clearer and more meaningful on a weekly than on a daily.
- For the vast majority of traders, the most profitable method is to ride a trend. Once you are profitable doing this, you will forget about trying to pick tops and bottoms.
- Executing your plan is much easier when you take your focus off the money.
- 3 requirements for successful trading include a strategy with positive expectancy, sound money management, and proper mindset.
- It is not being smart that makes a trader money. It is being smart enough to know the market is smarter.
- There is no perfect exit technique. One that works well on one trade, won’t work well on another.
- 3 virtues of a stock speculator include the discipline to only take trades that fit a plan, patience to wait for the right trade, and flexibility to change your position when the feedback tells you to.
- Buy high, sell higher.
- A trader that trusts the market over his opinion will always have an edge over the trader who trusts their opinion over the market.
- Never ask for someone’s opinion on the market.
- The patterns that stick out the most on your watch list are often the best setups to play.
- Year after year, the same things happen on the charts. Only the names change.
- If you can’t explain what your edge is to a 1st grader, you probably don’t have one.
- The time to get aggressive is early in a new bull market when the trend is not obvious and the crowd is in disbelief, not in a mature bull market that is obvious to the crowd.
- Self-esteem is what will get you through the tough times in the market. If you don’t have that, your odds of making it through to the other side are much lower.
- It is always best to maintain an open mind about what could happen in the market.
- In a bear market, you should never get so complacent that you stop being objective and become a perma-bear.
- The time a trader spends preparing before and after market hours are arguably more important than what the trader does when the market is open.
- Assessing your trades on the basis of R multiples will take your game to the next level, regardless of your timeframe.
- Don’t kick yourself for missing a setup. There will always be another one.
- Trading mistakes are a function of the internal dialogues we have with ourselves. Trading mastery is the kind of dialogue we don’t have!
- How can you expect consistent trading results if you don’t have consistency in your life.
- A market that is not offering a lot of opportunity is a market telling you to reduce risk, keep your powder dry and preserve mental capital.