DEVELOP A METHODOLOGY AND STICK
WITH IT. DON’T CHANGE METHODOLOGIES
FROM DAY TO DAY. Write down the specific
market prerequisites (setups) that must take place in order for you to make a trade. Doesn't really mater what the
methodology is, but you do want to make sure that you have
a set of rules, market setups or price action that must appear in
order for you to take the trade. You must have a game plan.
It could be as simple as this:
“My metric for everything I look at is the 200-day moving average of closing prices. I’ve seen too many things go to zero, stocks and commodities. The whole trick in investing is: ‘How do I keep from losing everything?’ If you use the 200-day moving average rule, then you get out. You play defense, and you get out.” --PTJ
trading
Tuesday, 12 January 2016
“The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.”
2. “Intellectual capital will always trump financial capital.”
3. “Every day I assume every position I have is wrong.”
4. “Losers average losers.”
5. “You adapt, evolve, compete or die.”
6. “Trading is very competitive and you have to be able to handle getting your butt kicked.”
7. “The whole world is simply nothing more than a flow chart for capital.”
8. “At the end of the day, the most important thing is how good are you at risk control.”
9. “Always think of your entry point as last night’s close.”
10. “I will keep cutting my position size down as I have losing trades. When I am trading poorly, I keep reducing my position size. That way, I will be trading my smallest position size when my trading is worst.”
11. “Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.”
12. “Markets trend only about 15 percent of the time; the rest of the time they move sideways.”
3. “Every day I assume every position I have is wrong.”
4. “Losers average losers.”
5. “You adapt, evolve, compete or die.”
6. “Trading is very competitive and you have to be able to handle getting your butt kicked.”
7. “The whole world is simply nothing more than a flow chart for capital.”
8. “At the end of the day, the most important thing is how good are you at risk control.”
9. “Always think of your entry point as last night’s close.”
10. “I will keep cutting my position size down as I have losing trades. When I am trading poorly, I keep reducing my position size. That way, I will be trading my smallest position size when my trading is worst.”
11. “Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.”
12. “Markets trend only about 15 percent of the time; the rest of the time they move sideways.”
Monday, 11 January 2016
The first week of 2016 to the year marks the worst start in the history of the stock market.
The devaluing Chinese yuan, slack global growth, divergences in the major averages, the slide in junk bonds, the slide in oil and other commodities reaching multi-year lows, and the prospect of rate hikes all contributed to the market's troubles.
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