Twenty Things That I Have Learned During My Time as a Stock Trader
Here is my list:
1. If you are wrong about a stock, you need to get out, no matter how strongly you feel about a position. Getting married or attached to a stock can kill you.
2. Stop losses are your friends, and will save you from a financial disaster.
3. Never double down on a losing position.
4. Never sell 100% of a position that is in an upwards trend.
5. Per share pricing is much more economical than per trade pricing.
6. One monitor just isn't enough to trade with.
7. CNBC is totally worthless.
8. Cramer needs to calm down.
9. No matter how strong your real-time newsfeed is, someone will always have the information before you.
10. Insider trading is alive, well and thriving on Wall Street.
11. The SEC is not really an independent body of the government. If you are rich and powerful enough, and especially if you contribute funds to the Republican party, you will be treated differently and can even get SEC employees fired.
12. Never hold a position overnight if you can help it.
13. Never leave your computer with an open position if you don't have a stop loss or profit stop on the position.
14. There is nothing better than completely nailing a trade.
15. There is nothing worse than completely blowing a trade.
16. Buying or short a stock based on a tip is usually a bad idea.
17. Thinking outside of the box will take you a long way in the world of trading.
18. Research stock options before decided to buy some.
19. Stock trading, along with real estate investment, are probably the two best ways for someone like me to attain a large amount of wealth, besides winning the lottery.
20. I love the stock market.
Filed under: Motivational | Stock Market Education | General Knowledge