Pancho Villa, Staff, and Defrocked. I think many of us on this thread have learned their own survival techniques through their trading. Each of you have hit on things that I have leaned over the last 28 years. Here are some of my rules that have worked for me. Some deal with my personality and they are just as necessary for me as any others. Sorry, it is a bit long. I do not know why I am so chatty all of a sudden.
First, my comfy retirement has already been assured. In addition to that, I have an IRA and a sorta IRA--neither of which I can easily get at. One can always use a little extra spending money in retirement. I can always sleep at night.
Second, I have three investment pools. Cash, long-term investments, and good old trading money. The amount of the good old trading money never changes when it is in my hands. Profits from the trading pool go to the cash pool awaiting investment at the right time or directly into the investment pool. Each long-term investment has a reason and as long as reality is consistent with that reason, my investments remain--or else they are out the door and the proceeds are into cash.
Third, fourth, fifth, sixth, and seventh. Discipline.
Eighth. Discipline.
Ninth. Never take advice. I did on my first "investment" in 1969 and the company went bankrupt. Never had that problem again.
Tenth. Use a broker that knows to keep their mouth shut when you are talking to them. I have had the same broker for 28 years. I see him, I talk to him, but he has never seen me.
Eleventh. Never tell anyone about your specific holdings. Act stupid if someone wants to talk about stocks and walk away.
Twelfth. Never make a mistake. Trades go wrong, markets go against you, but there is never any reason for mistakenly taking a position. If I do bad research, use poor technique, trade for no reason. etc, I am making mistakes.
Thirteenth. When you lose the feel, walk away. I walked away from trading in the mid 1980s. I simply lost it. My investments just kept making money though. But now I am back. |
