Every now and then I like to look up a few words of wisdom from a veteran trader just to either confirm my mentality going into the market or to knock myself back on track.
I came across this a little while ago for all you daytraders out there (me one of them). It's from Jeff Bierman at Think or Swim. Daytrading Do's and Don'ts
DOS:
1) Be patient--don't just dive into a trade
2) Develop a proven strategy--don't just trade blindly
3) Trade what you know and understand--if you cannot explain it, why trade it?
4) Check the daily news on your stock before you trade--stay informed on upgrades/downgrades/earnings etc...
5) Do a quick risk/reward analysis before you place the trade--put yourself in a good position to make money
6) Watch a stock's trading behavior for a while--learn its "personality"
7) Cut your losses short and let your winners run--basic, but effective
8) Get into a pairs trade if your initial trade is not working--reduce your risk
9) Trade with the markets that day--shift your deltas according to market conditions
10) Anticipate the unanticipated--always have some offsetting position just in case events reverse
11) Live to fight another day--no cash means no trading
12) If you have a hot hand then work it, if you don't then consider folding--recognize your rhythm
13) Know yourself--trade within your comfort zone
14) Stay focused--rid yourself of distractions
15) Trade with simplicity--don't overthink things
16) Stay positive--negative energy can impact your trading behavior and results
17) Learn from your mistakes--mistakes are inevitable so use them to your advantage
18) Drop your ego at the door--it's ok to take a loss, it's part of the game
19) Take a deep breath--it's going to be ok
20) Read as much material as you can on day-trading strategies--knowledge is power
DON'TS
1) Don't get emotional--the market is benign to your feelings
2) Don't over-leverage into bad trades--reduce your risk, not increase your risk
3) Don't get in all at once in a trade--build your position piece by piece
4) Don't get greedy--fade the trade and book profits systematically
5) Don't trade purely on technicals--fundamentals matter!!
6) Don't stuff your plate--trade a manageable number of stocks at one time
7) Don't trade solely on candlesticks---make sure you have a technical study set applied
8) Don't catch "falling knives" or short "rocketships"--wait until the trend is exhausted
9) Don't force yourself to trade--trade when the opportunity is right, not because you have to
10) Don't trade like a compulsive gambler--trade under control
11) Don't get caught up in the media noise/market hype--"those who know don't tell; those who tell don't know"
12) Don't trade on stock tips--be circumspect of other motives
13) Don't gloat over or brag about your last trade--focus on your next trade
14) Don't feel as if you have to get all your money back at one time if you sustain losses--take it one day at a time
15) Don't get discouraged--even the professionals get burned
16) Don't give up a gain when you have it--it's ok to make a bad trade, but inexcusable to give up a gain
17) Don't get cocky--the market is bigger than all of us and can reverse your fortune at any time
18) Don't think this is a way to generate "easy" income--if it were so easy, noone would ever work another job
19) Don't take your trading home with you--divorce yourself from the market because it's not your whole life
20) Don't put all your eggs into one basket--stay diversified with your financial wherewithal
Also I think the trader talk series from Lightspeed Trading is Outstanding. Great stuff. Most of it is on youtube. or look at Lightspeed Trading and click one of the links on the left
I came across this a little while ago for all you daytraders out there (me one of them). It's from Jeff Bierman at Think or Swim. Daytrading Do's and Don'ts
DOS:
1) Be patient--don't just dive into a trade
2) Develop a proven strategy--don't just trade blindly
3) Trade what you know and understand--if you cannot explain it, why trade it?
4) Check the daily news on your stock before you trade--stay informed on upgrades/downgrades/earnings etc...
5) Do a quick risk/reward analysis before you place the trade--put yourself in a good position to make money
6) Watch a stock's trading behavior for a while--learn its "personality"
7) Cut your losses short and let your winners run--basic, but effective
8) Get into a pairs trade if your initial trade is not working--reduce your risk
9) Trade with the markets that day--shift your deltas according to market conditions
10) Anticipate the unanticipated--always have some offsetting position just in case events reverse
11) Live to fight another day--no cash means no trading
12) If you have a hot hand then work it, if you don't then consider folding--recognize your rhythm
13) Know yourself--trade within your comfort zone
14) Stay focused--rid yourself of distractions
15) Trade with simplicity--don't overthink things
16) Stay positive--negative energy can impact your trading behavior and results
17) Learn from your mistakes--mistakes are inevitable so use them to your advantage
18) Drop your ego at the door--it's ok to take a loss, it's part of the game
19) Take a deep breath--it's going to be ok
20) Read as much material as you can on day-trading strategies--knowledge is power
DON'TS
1) Don't get emotional--the market is benign to your feelings
2) Don't over-leverage into bad trades--reduce your risk, not increase your risk
3) Don't get in all at once in a trade--build your position piece by piece
4) Don't get greedy--fade the trade and book profits systematically
5) Don't trade purely on technicals--fundamentals matter!!
6) Don't stuff your plate--trade a manageable number of stocks at one time
7) Don't trade solely on candlesticks---make sure you have a technical study set applied
8) Don't catch "falling knives" or short "rocketships"--wait until the trend is exhausted
9) Don't force yourself to trade--trade when the opportunity is right, not because you have to
10) Don't trade like a compulsive gambler--trade under control
11) Don't get caught up in the media noise/market hype--"those who know don't tell; those who tell don't know"
12) Don't trade on stock tips--be circumspect of other motives
13) Don't gloat over or brag about your last trade--focus on your next trade
14) Don't feel as if you have to get all your money back at one time if you sustain losses--take it one day at a time
15) Don't get discouraged--even the professionals get burned
16) Don't give up a gain when you have it--it's ok to make a bad trade, but inexcusable to give up a gain
17) Don't get cocky--the market is bigger than all of us and can reverse your fortune at any time
18) Don't think this is a way to generate "easy" income--if it were so easy, noone would ever work another job
19) Don't take your trading home with you--divorce yourself from the market because it's not your whole life
20) Don't put all your eggs into one basket--stay diversified with your financial wherewithal
Also I think the trader talk series from Lightspeed Trading is Outstanding. Great stuff. Most of it is on youtube. or look at Lightspeed Trading and click one of the links on the left
