Here is some excellent advice to traders from the blog – kiddynamitesworld.com. For the full post, click here.
I am giving some excerpts:
- A good trade must be right on both direction and timing. If one of these factors is wrong, the trade is wrong.
- I have trading rules and I must follow them. If my rules prevent me from participating in a market I correctly called, so be it.
- Traders MUST force discipline upon themselves, even if it means a move will be missed.
- There will always be another market. It is a sign of trouble when a trader feels he or she must be in a given market even if the set up was not right.
I try to follow these rules. Often, I explain on CNBC that I am not having a position, or stepping aside or starting with a small position. Sometimes, I miss a move, – so be it.