StockFetcher Forums · General Discussion · Trading Survival Tips<< >>Post Follow-up
mykl
10 posts
msg #45994
Ignore mykl
7/20/2006 9:59:01 AM

from The Traders Notebook
www.tradersnotebook.com/tips.html

If you want to be a successful trader then I challenge you to study these trading survival tips and memorize them. If you read them at least once a day for a minimum of seven weeks you will really in grain these trading nuggets into your subconscious.

*******

1. Trade with the trend!

2. Cut your losses!

3. If you keep your losses small your winners will make it worth the while.

4. To be a winning trader doesn't depend so much on how many winning trades you have or how big they are, but rather how small you keep your losses.

5. Don't be emotional when trading

6. Set profit and loss guidelines before entering a trade - and stick to them!

7. Don't allow a losing trade to become a "long-term" trade. Hoping that it will move back in the anticipated direction and eventually become a winner is sheer stupidity and a sure way to ruin.

8. Forget about the hype and hoopla from analyst and the media. Analyst from trading firms usually have a vested interest in stocks they tout and quite often so does the media.

9. Gaps to the upside first thing in the morning usually stall and fail. Traders that jump the gun too soon are generally left holding the bag.

10. When volume increases substantially it usually indicates a short-term turning point.

11. The market has a mind of its own. It never has to do anything - it does what it wants, when it wants.

12. A series of higher lows is a good sign of institutional buying.

13. Determine your profit and loss parameters before you enter a trade.

14. Always set your profit target at a point where you'll make more than when you have a losing trade. For example, if you're trying for a two point profit then risk only one point (you'd set your stop one point away from your entry price). At a minimum try for a 2:1 profit/loss ratio.

15. The biggest and most powerful force that will push a market higher is lower interest rates.

16. One of the most important chart formations traders should learn to recognize is the double-bottom formation. It's worth its weight in gold!

17. Amateur traders rule the opening price action.

18. Professional traders rule the closing price action.

19. Don't fall in love with a stock. We're in the business of trading. If you want to get married find a a great woman - not a stock!

20. If the market closes weak on Friday it generally will react weak on the following Monday.

21. Hope has NO place in trading. If you're hoping for your position to move a certain direction, your position is doomed!

22. Be slow to get in a trade and quick to get out!

23. Only trade with risk capital and protect it at all costs!




nikoschopen
2,824 posts
msg #45997
Ignore nikoschopen
7/20/2006 11:10:07 AM

Can you trim this list down to 3 lines or less?! It could be as simple as "never fight the tape", "go with the flow" and "when in doubt, go play golf".


nikoschopen
2,824 posts
msg #46000
Ignore nikoschopen
7/20/2006 12:12:12 PM

In my own wor1d of trading, everything boils down to two lines: Know when to pull the plug if ure wrong and know when to stay put when you think ure right.


UNITED
81 posts
msg #46037
Ignore UNITED
7/22/2006 8:05:39 PM

GOOD BASIC INFO,BUT THE MOST IMPORTANT TIP OF ALL>FIND A TRADING METHOD THAT WORKS WITH CONSISTENCY AND EXECUTE IT.PS LET ME KNOW WHEN YOU FIND IT......


TheRumpledOne
6,358 posts
msg #46039
Ignore TheRumpledOne
7/23/2006 9:33:22 AM

"FIND A TRADING METHOD THAT WORKS WITH CONSISTENCY "

It's NOT the method that is consistent, it's the trader!

Just about every method is consistent when viewed HISTORICALLY.

What matters is what the trader does AT THE MOMENT!

Methods that I like are simple crosses of HORIZONAL LINES:

1) Previous session candle's top, middle, bottom. Swing or day trade.

2) Current day's open. Day trade.

3) Cross of $xx.00, $xx.25, $xx.50, $xx.75 price levels. Day trade.

Only times you fail with these is if you are too slow or too greedy.

MAY ALL YOUR FILLS BE COMPLETE.




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