“I MADE ALL MY MONEY BY SELLING TOO EARLY” – said by a very successful trader
All investors and traders should have a list of simple rules to follow. Here are Three28Capital’s rules:
- DISCIPLINE and PATIENCE are most important.
- Always have cash available on the sidelines as a hedge and be very disciplined in its deployment.
- It’s OK to take a draw down if you entered at a logical point. It’s part of the game.
- Always hedge both downside and upside risk.
- Put your trading ego aside and accept that your thesis sometimes fails.
- Don’t ever make a trade that will cause you to lose sleep if it doesn’t go right.
- Trading environments shift. Don’t be stubborn. When facts change, change your strategy.
- Capitulation doesn’t happen often. Be ready when it does.
- Focus on now. Don’t worry about the past. Learn, move on and strive to improve.
- Unless an option position is deep in the money, do not remain invested in front month expiration’s.
“THE FOUR MOST DANGEROUS WORDS IN INVESTING ARE: ‘THIS TIME IT’S DIFFERENT'” – Sir John Templeton