Nineteenth day.
Hello Traders!
12 Trading Rules by Joe DiNapoli.
1. Loss of opportunity is preferable to loss of capital.
2. Picking safe, readable, and ultimately high probability trades is the way to go.
3. Use logical profit objectives for all positions. Know your exits and stick to them.
4. Markets are squirrelly animals – make
your trading plans ahead of the market.
5. Don’t buy new highs or sell new lows – wait for the market to come to you. Buy retracements. If you miss the train, don’t beat yourself up – another one will come by shortly.
6. Above all, follow your own trading plan and no one else’s.
7. Trade quietly – with the exception of a mentor, tell no one about your positions, profits, or losses. This is especially true for those who are close to you, like your wife, husband, or friends. This self-gratification process or sharing process will put you under psychological pressure to win on every trade and can be a primary reason for failure to follow your plan.
8. Don’t carry a sizeable position when traveling. The market will always catch you off guard at the most inopportune time.
9. You are only one trade from humility. A swelled head does not belong on a trader’s shoulders.
10. Add to your knowledge before attempting to add to your wallet.
Newbie traders think they can become pros with little more than a computer and hope. In this business, hope is a four letter word. Show me a humble trader, and I’ll show you someone ready to learn.
11. Develop your sense of humor – you’ll definitely need it.
12. Help other traders whenever you can.
This is more practical than philosophical – giving keeps the ego in line and when you need help, and you will, you’ll find it.
We wish all of you successful trades and profits!
Kind regards, Team traders “Powerful Traders”
