Boston900

Thought this was cool
Rules outlined in the book - Stock Market Wizard
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;
(The Stop-Loss Breakdown)

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; (There Are No Shortcuts)

7. Trading is a vocation -- not a hobby

8. Have a business/trading plan;
(Write This Down)

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 (Nothing Doing)

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 (The Wrong Crowd)

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 the way Vince Lombardi Bill Parcells reviewed past Superbowls

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
(Protect Your Backside)

19. Good traders manage the downside; They don't worry about the upside

20. Wall street 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 !
http://bigpicture.typepad.com/commen...s-from-st.html

bubble

Thank you for these tips/rules. They really are very helpful.

You seem to suggest that trading is equal to a full time job, and you do need to take it seriously. At the moment I practise using Fantasy stock trading, which mimicks the market with a twenty minuite delay. Of course I dont study it intensely because the money is not real.

I do like you point 17, and your analysis is to the point and realistic, so thanks again.

DianaR

I don't know if you have to treat investing like a full time job, like day traders. If you are investing for the long term you will handle things differently. If you never invest more than you can afford to lose, and then reinvest as long as conditions are favorable, you should come out ahead in the long run.

Rabscuttle

I hate to ask, but what exactly is excessive leverage (real novice here)...

StockHunter

I agree, but if you do end up daytrading make sure you do it FULLTIME.

StockHunter

pheinbaugh2

Wow. Thanks for the help. This was great information for me.
Thanks again!

Raven

Oh boy. 10 years? I'm going to be a beginner for 10 years? That's so scary I might just stick with real estate for a while longer

Or maybe I just don't want to be a trader?? Maybe I just want to hold some nice shares to learn what happens to them?

I think that might be nicer (and less heart-attack inducing)

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DianaR

Well,

Assuming you live the ten years, the time is going to pass anyway.

You might come out ahead taking the time to develop your skills and run your own investment portfolio, instead of trusting your financial future to others!

Raven

LOL - I would never trust my financial future to anyone but myself. I work at a bank. This means we're trained in mortgages - which is why I have several real estate investments - but they give us NO training in the share market - which is why I'm here to learn.
This is why I also wrote: "Maybe I just want to hold some nice shares to learn what happens to them?"

Trading means buying and selling to turn a profit. Holding for the long term means you're investing (according to Warren Buffet anyway)

StockHunter

For me "trading" is daytrading, and "investing" is holding on longer then 2 days lol .

__________________
Hunt for the daytrade
"It's not about the timeframe you are trading. It's the strategy, and rules you use."

pheinbaugh2

Thanks for the advice. I was doing a web search and had a horrible time. I couldn't find 1/2 the information that is provided on this site.

DianaR

Based on these definitions, I am definitely an investor. I don't move things around too often,

puchchu

Trading is a vocation -- not a hobby
Yes, if you take it as your hobby then you are out. I liked it. And all information are very intereting and truth. Thanks!

apextrading

Great thread

Stock Market Wizards is a wonderful read.

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