When youare trading size, you have to get out when the market lets you out, not when you want to get out... ... ... If you want to move a large position, you don't wait until the market is in new high or low ground because very little volume may trade there if it is a turning point.
Even though markets looks their very vest when they are setting new highs, that is often the best time to sell... ... ... to some extent, to be a good trader, you have to be a contrarian.
Never play macho man with the market. Second, never overtrade.
Decrease your trading volume when you are trading poorly; increase your volume when you are trading well. Never trade in situations where you don't have control.
If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in. There is nothing better than a fresh start.
Don't be too concerned about where you got into a position. The only relevant question is whether you are bullish or bearish on the position that day. Always think of your entry point as last night's close.
The most important rule of trading is to play great defense, not great offense. Every day I assume every position I have is wrong. I know where my stop risk points are going to be. I do that so I can define my maximum possible drawdown.
Don't be a hero. Don't have an ego. Always question yourself and your ability. Don't ever feel that you are very god. The second you do, you are dead.
From studying history that credit eventually kills all great societies. We have essentially taken out our American Express card and said we are going to have a great time. Reagan made sure that the economy would be great during his term in office by borrowing our way into prosperity. We borrowed against the future, and soon we will have to pay.
Trend following. The basic premise of the system is that markets move sharply when they move. If there is a sudden range expansion in a market that has been trading narrowly, human nature is to try to fade that price move. When you get a range expansion, the market is sending you a very loud, clear signal that the market is getting ready to move in the direction of that expansion
I always believe that prices move first and fundamentals come second.
Don't focus on making money; focus on protecting what you have.
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