What's the most important trading lesson that you learned this year?

[amitrandive]

What's the most important trading lesson that you learned this year?

Dear All

Let us analyse what is the most important lesson you learnt in trading this year,

For me the most important lessons were

1) Don't deviate from your trading plan and system.
2) Don't over leverage, live to fight another day by preserving your capital.
3) Before placing your trade check all the higher time frames for the predominant trend.
4) Always book profits.Even book partial profits.Take something off the table.
5) Admit your mistake and get out of a wrong trade with minimal losses.
6) On a flat trading day, do not over trade to get back your losses, they just multiply.
7) Do not randomly trade in any stock.Only trade the stocks you are comfortable with in terms of liquidity,price,risk,volatility,etc.
8) Once you make a good profit, take the rest of the day off.Many times earned profit is lost by over trading.
9) If going through a string of losses, take a break of at least a week to get things in the right perspective.
10) Spend quality time with your family, you never realize what you have missed when your children grow up.

 

[amitrandive]

contd.....

11) Stay out of a flat market, do not force any trades.No trade is also a positive trade

 

[RavishReport]

What's the most important trading lesson that you learned this year?

Dear All

Let us analyse what is the most important lesson you learnt in trading this year,

For me the most important lessons were

1) Don't deviate from your trading plan and system.
2) Don't over leverage, live to fight another day by preserving your capital.
3) Before placing your trade check all the higher time frames for the predominant trend.
4) Always book profits.Even book partial profits.Take something off the table.
5) Admit your mistake and get out of a wrong trade with minimal losses.
6) On a flat trading day, do not over trade to get back your losses, they just multiply.
7) Do not randomly trade in any stock.Only trade the stocks you are comfortable with in terms of liquidity,price,risk,volatility,etc.
8) Once you make a good profit, take the rest of the day off.Many times earned profit is lost by over trading.
9) If going through a string of losses, take a break of at least a week to get things in the right perspective.
10) Spend quality time with your family, you never realize what you have missed when your children grow up.

Absolutely right.

 

[manishchan]

- Don't trade every setup. Take only the one that you are confident about.
- Don't jump to take the trade as soon as you see. Wait for the price to reach your level
- Take time off the trading to spend with family/other hobbies

 

[amitrandive]

contd............

12)Do not keep a heavy capital in your account , this makes you complacent and you tend to ignore small losses.
13) Keep small stop losses.The correct trade consists of only three things, the right entry,the right stop and the right exit.
14)Do not copy anyone else's system or trades blindly.Do not run from one system to system but follow one system with discipline.
15) Do not be afraid to abandon a system which is proved nonprofitable with the changing dynamics of the markets.

 

[TraderRavi]

What's the most important trading lesson that you learned this year?

wait wait and wait.

 

[amitrandive]

...contd
15) Do not invest on face value of companies.Use your own analysis.Sometimes the great wealth creators can be great wealth destroyers.

Check this link.

http://www.traderji.com/fundamental...p-wealth-destroyers-2008-13-a.html#post913137

 

[amitrandive]

Top Ten Wealth Creators of 2008-2013

As per a survey conducted by Motilal Oswal

http://www.moneycontrol.com/mccode/news/article/article_pdf.php?autono=1008035&num=0

 

[waktem]

Market gives a nd values goes ups and down on the whole country problems and policies this i have learn the most from this year as like the political issues in India according to the elections move further.Thanks

 

[amitrandive]

.....contd

16) On Big Event days like Election results, credit policy news, etc , stay out of trade until a clear trend is defined ,rather than getting hit by the whipsaws