The Education of a Speculator

The lessons:

  • When behind, put everything you have into catching up. Dwell on your past victories, recalling them to yourself in precise detail.

  • Never look back on defeats, trying to figure out what you did wrong;that activity is for suckers. There's no need to learn from traders who have poor results: losses are just bad luck.

  • If the score goes against you, stick to your guns. You know best. If the results go against you, don't worry. Gains are bound to come back, especially when the market is wrong.

  • Perhaps the most important rule for speculators: Don't get in over your head

  • Cut your gains when you're ahead. Never think about what could go wrong and it won't. Grab at small profits and refuse to take losses.

  • Information that seems to be completely fresh is often as smelly as a dead fish.

  • Never be flip, especially when the forces are with you.

  • One of my essential rules: Never use stop losses. Avoid stops, except when you can't meet a current or prospective margin call.

  • In sports and markets, the most dangerous time is when you are ahead. That is when you are most likely to let up, drop your guard, and make a bad decision out of overconfidence.

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© 2016 by aTrader