111 Learnings from the Stock Market
Inspirations, to be a successful trader / investor.
- Control what you can, Manage – what you cannot control.
- Take the action, what you have decided. Don’t change your mind. Be disciplined.
- Trade what you see, not what you want to see.
- The market will do what it will do. Just follow price and don’t worry what any one has to say.
- Fear and hope drives the market.
- Nothing new ever occurs in the market.
- Follow the trend.
- When the ship starts to sink, don’t pray – jump.
- Personal views on the economy should not influence my trading decisions.
- It is better to be more interested in the market’s reaction to new information than in the piece of news itself.
- I learned not to take other’s opinion and view but, to trade my own view.
- Big movements takes time to develop.
- The chartists are astrologers of the stock markets.
- Leader stock of today, May not be the leader of tomorrow.
- Never buy a stock, Only to obtain dividend.
- Never permit speculative trade to turn into investments.
- Split your profits right down the middle and never risk more than 50% of them again in the market.
- If everyone is worried about the same thing, it is most likely already priced into the stock.
- A hold is as good as buy.
- Never get emotional attached to stock.
- Prices will do what they do, and it’s our job as traders not to predict anything – but to react accordingly.
- Don’t listen to the news. The market doesn’t care what you or anyone else thinks.
- Never add to a losing position.
- Time spent on research is more valuable than time spent watching the market while it is open.
- It’s important to know when to ignore the “noise” of fundamental data that does not support the prevailing trend.
- Plan your trades. Trade your plan.
- Money can not be made everyday from the market.
- Use the stop lose as a weapon to minimize loss and protect the capital in stock market.
- The market is always right.
- The market is a master, neither you nor the experts.
- Turn off the external influencers – analysts and pundits claiming to know tops, bottoms, and directions.
- Thinking is more important than knowing.
- I finally realized and accepted that trading is a probability game.
- Trading without a carefully constructed plan is means of losing money.
- Markets are not casino, where you throw a quarter and expect luckily to get rich, trading is a business and as a business you need to have a plan and follow it.
- Stick to your trading plan – know your rules and follow them or quit the market for long time.
- Successful “systems” can break down and watch out when they do.
- To avoid intervention of others opinion, traders should not disclose their own position in the market before position is closed.
- To be true to yourself and not trade with other peoples methods. That I have to discover my own methods of trading system.
- Test new ideas and strategies before implementing them with real money. Once they are tested in real-time, start small and only add capital to successful strategies.
- Money management is the most important factor in success. Do not take big positions over capacity.
- Cut losses and admit defeat when appropriate.
- Know my plan before making any trade and where I’m going to exit in case I am wrong.
- Trade execution and risk management are far more important to success than finding the best stocks.
- Risk and reward must be evaluated before every trade.
- Lost opportunities are easier to make up than lost capital.
- For every trade, you must have a plan B.
- Markets can be irrational longer than you can remain solvent.
- Markets are rarely rational or logical. Emotion, perception and liquidity rules the market.
- Be greedy when others are fearful.
- To think more like a market maker.
- Buy the dips in up trending markets.
- Sell on the tops in down trending markets.
- Gut wrenching times are often most profitable times to invest.
- Success comes with patience.
- Buying pull-backs on up-trending stocks worked better than chasing breakouts.
- Forced trades are usually loser trades.
- There is no investment rule that always work.
- The best investment is one you did not make.
- Invest in yourself.
- Gains that accumulate over time can be taken away in a moment.
- When in doubt, knock it out.
- Revenge trading is a great way to lose lots of money.
- Successful traders buy into bad news and sell into good news.
- Successful traders are not afraid to buy high and sell low.
- Do not buy the stock, Because it is low priced.
- Remember that a bear market will give back in one month what a bull market has taken three months to build.
- Capital preservation always trumps capital accumulation.
- To protect investment principle and reduce risk, keep losses as small as possible and try to make big profits.
- If you don’t control fear, you’ll miss opportunities.
- Resist the urge to get too cautious just because markets are strong.
- When investing in a theme, eliminate the non-performing positions and increase the investment in those that are. Get out when the theme seems to be falling out of favour.
- To trade successfully, you must be comfortable taking risks.
- Good trading and investing is all about risk management, not prediction.
- Understand the mental accounting for your money.
- Understanding that there are different cycles in the market.
- You must be adaptive in order to be successful as a trader.
- It is better to enter a number of small positions than going “all in” at one time.
- Proper position sizing can make the difference between profits and losses, usually trading less can make more money.
- The bad news for the economy (share market) is good news for interest rates.
- Any known forthcoming news has been discounted by the market.
- If a market doesn’t do what you think it should do, get out.
- Learn to trade both sides of the tape. Be able to comfortably go short as much as you go long.
- Remember that a bear market will give back in one month what a bull market has taken three months to build.
- How helpful it is to use correlation among various markets as an indicator.
- Investment and trading are increasing simultaneously.
- Crisis situation in stock market always provide an opportunity.
- Stochastic / RSI can be useful to spot timely entry points which offer attractive risk / reward set-up.
- Learning to draw and use “trading channels” has been proved very useful.
- Keep it simple as possible, I’ve learned about not using too many indicators.
- I learned not to get sucked up in the day-to-day churn of news and opinion.
- I learned that I am my worst enemy when it comes to trading.
- To reduce the amount of capital I risk on each trade.
- It is best to enter and exit the share market at the right times instead of staying invested all the time.
- Diversify your capital in different assets and also divide your trading capital in different stocks.
- Never over-trade.
- Do not follow the crowd, they are always wrong.
- Remember, Bear market have no support and Bull market have no resistance.
- Asset allocation is more important than individual stock picks.
- You must find what you like to trade the most, like stocks, commodity, futures and which time frame best describes your trading style and accommodates your life style.
- Learning how to play poker has helped me become a better trader
- I am not as good as I thought about me.
- I am not ready to trade for myself. I would not hire myself to manage my own assets right now and need more practice. This is an ego blow to myself, but I have to put my ego aside.
- It seems to get more difficult with the more I know.
- How important it is to keep a trading journal.
- Don’t take the market home.
- Don’t be lazy about record keeping.
- The more time and dedication I put the more successful I am.
- The market is controlled by few to the disadvantage of many.
- Lose your opinion – not your money.
- learn the difference between betting and investing.
A person must not only look at the market when ever they feel like it, a part-time trader, or making trading just a hobby, or have an excitement trading with market, if a person is interested in making money from the stock market. Trader / investor have to keep on learning. Learning never stops. The more you learn the better investor / trader you become.
