5 THOUGHTS FOR TRADERS - MUST READ

1.  We want all trades to be winners. The foolproof system for trading profits is attractive and the seller of such systems can be convincing, yet the profits are elusive.  The market could care less about our system, a past trading record, or the trading record of the one selling the system.  You do know that the market’s attorney requires that the following be posted in a prominent place…like on our foreheads beside the big L sign!: “Past results are not indicative of future returns.”  By the way, the market says, “you’re doing it wrong”.

2.  We want to add to losers. The last time I checked the only reason we add to a loser is when the discussion is about our weight!  Get on the scales and add up more losing pounds!  Be the BIGGEST LOSER!  The market, however, says the way to tip the scales in our favor is to add to the winners and lighten up on the losers.  To do otherwise is to “do it wrong”.

3.  We want to be right.  Two wrongs don’t make a right in life but in the stock market two wrongs (and plenty more) will help you get on the right road to making money.   The market says the trading game is about making money not about stroking the ego.  The “right” road is the “wrong” road when your on Wall Street.  Hey, if  you doing it to be right, then you’re “doing it wrong!”

4.  We want the market to follow our common sense rules. The market has two rules and two rules only: know when and why to buy and when and why to sell. If you try to get too cute with the market or try to have the market make sense it may just kick you around a little bit, imprinting the following on your behind: “You’re doing it wrong”.

5.  We have expectations to make a fortune in the market…right now! Mr Market is in the business of frustrating anyone who builds all their hopes and dreams on expecting the market to give them something right now; like it is deserved and long overdue.  The market does not give or take away. The market is no respecter of persons or of time.  The market just is.  If we harbor expectations that are not quickly fulfilled then we have no one to blame but ourselves for having the wrong expectations to begin with!  We should expect the market to do nothing but reward us for our humbled, patience, egoless attitude, surprised when we make money and thankful for the lesson when we do not.  If we are arrogant, expecting riches untold for our superior technical and fundamental skills, the market has a few words for us: “you’re doing it wrong!”