Stock Market Trading: The 20 Rules of Engagement
"Good traders know how to make money; great traders know how to take a loss," and 19 other truisms to trade by.
19. Trade the market you have not the market you want.
In today's digital world, news travels at the speed of light, trades are executed in nanoseconds, chatter abounds in social media, and central banks seemingly shift their stances in real time. You don't have to like it but you must respect it and incorporate the dynamics into your decision-making process.
20. Take time-outs.
Trading is all-consuming and emotionally draining -- there's a reason you get paid the big bucks! It's essential that you take a break from the flickering ticks and give your mind, body, and spirit a break from the incessant stress. The market will be here when you return; just make sure your head is clear when you do.
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Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at firstname.lastname@example.org.
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