It is encouraging to see that many readers have also figured out and are helping us all in keeping a close watch on the important patterns that are in the making. (Keep contributing!)
While recognizing patterns at the right time is crucial for our success in trading, there is something more that we need in order to reap the true benefits of the same. In that reference, I was reading about Paul Tudor Jones, one of the most successful traders of America, who shone during hard times.
So I felt like sharing some of his tips, most of which we would be aware of, but would act as reminders & could benefit us all - young as well as experienced traders/investors:
- Don’t be a hero, don’t have an ego. Always question yourself & your ability. Don’t ever feel that you are very good. The second you do, you are dead!
- Play great defense.
- Don’t ever average losses
- Never trade in situations where you don’t have control. I don’t trade in front of key reports.
- If you have a losing position, get out. Coz you can always get back in. There is nothing better than to have a fresh start.
- I don’t really care about the mistake I made 3 seconds ago in the markets. What I care about is what I am going to do from the next moment on. I try to avoid any emotional attachment to the markets
- Never think on what you might make on a given trade, but only what you could lose.
Whenever Paul realized that he was trading poorly, he would continually reduce his position size until he was on track again. That way, when he was trading his worst, he was also trading his smallest.
Fascinating, isn't it?