Top Rules of Trading and Investing
- May 13th, 2017
- Posted in Investing . Trading
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The markets are not random.
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Don’t get caught in a situation where you can lose a great deal of money for reasons you don’t understand
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Patience – wait until a trade is so compelling that you can’t stand the thought of not taking it
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Focus on maximizing gains over number of wins
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Preserve capital and wait patiently for the right opportunity to make the extraordinary gainzz
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Expect the extreme! The unexpected and impossible happen from time to time
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Maximize profits, cut losses quickly
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If you have an edge (and you have to have an edge), be ready and willing to bet the house on it
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Never hold a position that gaps against you right after you put it on
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There must be a non-random pattern, and you must identify and trade it appropriately
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Trades that are difficult to take are often the successful ones
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If the trade goes wrong, how do I get out?
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You can’t win if you’re trading a leverage size that makes you fearful of the market
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Know when you’re getting out before you get in
Gleaned from The New Market Wizards: Conversations with America’s Top Traders by Jack D. Schwager
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