These “trading lessons” are captured from My Stock Market Trading Journey:
- Stock Markets sometimes crash right at the point when they seem to be going up like there’s no tomorrow.
- Trading isn’t easy… there is a lot to learn and understand.
- Education is important.
- Technology is a huge help, but can result in losing touch with the basics and can result in information overload.
- Trading Rules and a Trading Plan is key to success. Don’t flit and float from one strategy to the next.
- Hearsay and rumour is a shortcut to making large losses and introducing massive RISK.
- Risk management and money management go hand-in-hand.
- Never underestimate the impact your mind, attitude and mood has on your trading – Psychology.
- There is no holy grail in trading.
- Set budget aside for your stock market trading education.
- Some things in life are free, but for some real depth, it’s worth paying a little to learn.
- Trading losses are a great teacher. Think of this as part of your learning – assuming you are actually learning.
- Proprietary strategies and indicators aren’t really what they seem
- Copying someone else’s strategy may not work for you. You ultimately need to find your own, document it, track it, tweak it, analyse it.
- Trading is not for everyone.
- Treat your trading like you would treat a business, no matter if you trade short term, medium term or long term strategies.
- Trading is ACTIVE. There is no one size fits all strategy. You need to move with the changes in the market.
- Continually check your strategy, making it your own! Tweak and improve through an appropriate feedback mechanism.