Rules To Stop Losing Money
Don't trust others opinions -It's your money at stake, not theirs. Do your own analysis, regardless of the information source.
Don't believe in a company -Trading is not investment. Remember the numbers and forget the press releases. Leave the American Dream to Peter Lynch.
Don't break your rules -You made them for tough situations, just like the one you're probably in right now.
Don't try to get even -Trading is never a game of catch-up. Every position must stand on its merits. Take your loss with composure, and take the next trade with absolute discipline.
Don't trade over your head -If your last name isn't Buffett or Cramer, don't trade like them. Concentrate on playing the game well, and don't worry about making money.
Don't seek the Holy Grail -There is no secret trading formula, other than solid risk management. So stop looking for it.
Don't forget your discipline -Learning the basics is easy. Most traders fail due to a lack of discipline, not a lack of knowledge.
Don't chase the crowd -Listen to the beat of your own drummer. By the time the crowd acts, you're probably too late…or too early.
Don't trade the obvious -The prettiest patterns set up the most painful losses. If it looks too good to be true, it probably is.
Don't ignore the warning signs -Big losses rarely come without warning. Don't wait for a lifeboat to abandon a sinking ship.
Don't count your chickens -Profits aren't booked until the trade is closed. The market gives and the market takes away with great fury.
Don't forget the plan -Remember the reasons you took the trade in the first place, and don't get blinded by volatility.
Don't have a paycheck mentality -You don't deserve anything for all of your hard work. The market only pays off when you're right, and your timing is really, really good.
Don't join a group -Trading is not a team sport. Avoid chatrooms and financial TV. You want the truth, not blind support from others with your point of view.
Don't ignore your intuition -Respect the little voice that tells you what to do, and what to avoid. That's the voice of the winner trying to get into your thick head.
Don't hate losing -Expect to win and lose with great regularity. Expect the losing to teach you more about winning, than the winning itself.
Don't fall into the complexity trap -A well-trained eye is more effective than a stack of indicators. Common sense is more valuable than a backtested system.
Don't confuse execution with opportunity -Overpriced software won't help you trade like a pro. Pretty colors and flashing lights make you a faster trader, not a better one.
Don't project your personal life -Trading gives you the perfect opportunity to discover just how screwed up your life really is. Get your own house in order before playing the markets.
Don't think its entertainment -Trading should be boring most of the time, just like the real job you have right now.
