Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Market Wizards

Reply
boing
Frequent Contributor
The things I learned reading MArket Wizards:1.Stop losses 2.Be prepared to take losses but learn from your mistakes 3.Limit your exposure in any one trade (2% rule) 4.Follow the trend and do not try and predict the limit of the trend 5.Be patient. Do not trade for the sake of trading 6.Let your winners run 7.Discount news, tips, rumours and other noise 8.Do not average down 9.Keep emotions under control 10.Always assume the price is right 11.Be disciplined, but flexible 12.Have an exit point before entering a trade 13.Keep a log of your trades 14.Have a methodology and do some backtesting on it Please feel free to expand, disagree, criticize.
0 Kudos
3 REPLIES 3
boing
Frequent Contributor
There is some thing that I struggle to understand though. A lot of these traders tell you to take a break or reduce your position size after taking losses. If I have a system that I trade, how does this tie in with consistency.
0 Kudos
doomsdayza
Super Contributor
i think it's a psychological / confidence thing. you're less worried about smaller positions (smaller risk) therefore it's easier to get back on the horse and hopefully your consistency will improve. it's trying to get over the fear of losses. you're only worried about trading well when you're positions are decreased substantially as he talks about, and not that you might make another loss. that's my take.
0 Kudos
qwest
Frequent Contributor
Boing, if you stick to that plan you will make money. I would like to add the following 1)Never marry a share.2)Never be greedy leave something for the other guy.3)Get rid of your losses.&4)The market is always right,Regards
0 Kudos