Thursday, February 28, 2008

Stock Market Wizards: Stuart Walton

  • Be patient--wait for the opportunity
  • Trade on your own ideas and style
  • Never trade impulsively, especially on other people's advice
  • Don't risk too much on one event or company
  • Stay focused, especially when the markets are moving
  • Anticipate, don't react
  • Listen to the market, not outside opinions
  • Think trades through, including profit/loss exit points, before you put them on
  • If you are unsure about a position, just get out
  • Force yourself to trade against the consensus
  • Trade pattern recognition
  • Look past tomorrow; develop a six-month and one-year outlook
  • Prices move before fundamentals
  • It is a warning flag if the market is not responding to data correctly
  • Be totally flexible; be able to admit when you are wrong
  • You will be wrong often; recognize winners and losers fast
  • Start each day from last night's close, not your original cost
  • Adding to losers is easy buy usually wrong
  • Force yourself to buy on extreme weakness and sell on extreme strength
  • Get rid of all distractions
  • Remain confident--the opportunities never stop

"Either go at it full force or don't go at it at all. Don't dabble."

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