Thinking in other time frames must ONLY occur before you place a trade. Once you are in a trade all you need to do, all you MUST do, is focus on the now. This is not the time for prediction or review. Just observe what the market does and react accordingly.

 

In the stock market (as in much of life), the beginning of wisdom is admitting your ignorance. One of the many things you cannot know about stocks is exactly when they will go up or down.

 

James K Glassman

 

Making profits and limiting losses is all that counts.

 

You need to concentrate at all times on keeping your losses small. Never on what you expect to make but only on what you might lose.

 

The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading. I know this will sound like a cliché, but the single most important reason that people lose money in the financial markets is that they don?t cut their losses short.

 

Victor Sperandeo

 

Greed causes traders to buy too soon and too much. It also results in trades being held for too long.

 

Be aware of the delusions that hope, denial and wishful thinking can create. Hanging onto a trade because you hope it may come good is not a successful strategy.

 

Your focus must always be to trade well and in particular to strictly follow your money management rules. If you do that the money will come.

 

We don?t try and predict. We don?t try and work out what the true price should be and we don?t pretend that we know where the market is going. We just observe and join in when it moves.

 

In a similar way, stocks with large numbers of shares (blue chip stocks) and large volumes of transactions tend to act more consistently than small cap stocks with low volumes. So these are the ones we are interested in because they provide us

 

with more clues as to how they might respond.

 

Our suggestion is that you ignore all mass media reporting on the stock market except for perhaps establishing overall sentiment.

It is a quest for stock market enlightenment... which is a worthy quest...

It is sad that many people simply play the stock market without the necessary background knowledge, usually only with an urgent desire to make some money quickly so that they can improve some aspect of their lives.

But unfortunately, it is these very people who need money the most that  lose their money.


Thus this thread is truly important because the importance of good stock market education will then be realised by many before further and greater frustration come to pass...

and find the most exotic viruses.

Two monitors make the picture so much clearer.

Most successful stock traders use simple, basic strategies.