Wednesday, February 17, 2016

Patience

One piece of advise is consistent among my 3 favorite books (Rule #1, Stan Weinstein's Secrets for Winning in Bull and Bear Markets, and The Little Book of Market Wizards) and the advice is to have patience.

Chief among the recommendations is to review the market on nights and weekends. Do not, I repeat DO NOT, watch the market all day. It will mess with your head!

Here are some of the nuggets I have found to be most helpful:
  • Review stocks when the market is closed (nights or weekends). 
  • Don't watch quotes all day long because it can lead to over-trading.
  • Resist the temptation to trade all the time.
  • Don't trade on hunches. Have a system. See my prior post on using a checklist.
  • Don't announce ideas to your friends because you will the become too attached to those ideas, lest you look like a fool. 
  • Doing nothing is harder than it sounds.
  • Don't sell too early, stay with winners (let your winners run) and sell the losers.
  • The trades not taken matter as they preserve capital.




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