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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: paret who wrote (3609)	5/5/2005 3:47:18 PM
From: kodiak_bull	Respond to of 13449

Paret, The problem is usually NOT whether or not someone is bright enough to trade or put lessons to work. Most problems I see (including some of my own in the past--I hope they're in the past) happened because the trader was too smart, had too many answers, "knew" what the market had to do--and when, and thought rational behavior, efficient markets theories and Euclidean geometry provided the natural law underpinning securities trading. Rule number one: embrace ignorance, as it is only from ignorance that we can learn. Find out what you don't know, what you can learn and what you will never know, and make a plan to deal with them all. Rule number two: be prepared to be wrong, be prepared to make a quick exit. Rule number three: if you find yourself saying, "Gee, I sure hope this goes up/down/sideways," sell the position and go flat. Rule number four: Losing on trades? Trade smaller and smaller. Rule number five: Losing sleep? See Rule numbers 1-4. Rule number six: Accept that you will be humbled by the Market every day, that it's power exceeds your brokerage account and puny brain, and accept that you can still make more winning trades than losing trades once you have the knowledge that 99% of traders won't be able to absorb Rules 1 through 6. (There are probably a lot of sets of good rules out there, but most of them will contain the six I have listed here.) Kb