Here are the four most important trading lessons I have learned:

  1. First of all, never be greedy. Never throw a lot of money onto a “sure thing” or any one position. There is no such thing as a guaranteed profit.
  2. Second, when there’s nothing to do, do nothing. And don’t chase trades or investments. Trades are like busses: if you miss one, there’s always another one coming along.
  3. Third, trust yourself. It’s okay to take advice and listen to others, but make sure you do your own homework. It doesn’t have to be a lot of work, just enough that you can be comfortable with your decision. After all, it is YOUR decision, your money.
  4. Lastly, have a plan. At what point will you exit the position if it’s not working out? You can use a hard stop or a mental stop; just make sure you have an exit plan. Take profits. You don’t have to take off all the position if it reaches your profit target, unless things have changed regarding your outlook. If the position is profitable and keeps going up, raise your stops.
  5. Stick to my basic rules of thumb… and make sure you’re not tied to the railroad tracks in front of any tunnel, ever.
And Most importantly above all that you do, be true to your self 1st !!