Trading Talk.com

This is a continuation of trading tips from Joe Ross.

NEWS
14. Buy the rumor, sell the news.

15. News is only important when the market doesn’t react in the direction of the news.

16. Read today’s paper tomorrow. When you read yesterday’s paper each day with the knowledge of what the market already did, you will affirm that this mornings paper with yesterday’s news has nothing to do with today’s market.

A TIME TO TRADE
17. On the open, never enter a new trade in the direction of a gap. Never let the market make you make a trade. (Closing an existing position is obviously ok.)

18. The first and last tick are the most expensive. Get in late and out early.

19. When everyone is in, it’s time to get out.

20. Never trade when you are sick.

TRACKING YOUR TRADES
21. Size kills. Only change your unit of trading under a plan of attained goals. Also, have a plan for reducing size when your trading is cold or market volume is down.

22. Confidence kills. Remember, you really don’t know anything. Respect the market every second of every day. Expect the unexpected. Always know your position and exit your trade immediately whenever you feel uneasy.

23. Measure yourself by profitable “days in a row,” not by individual trades.

24. The best way to break a streak of “losing days in a row” is to not trade for a day.

25. Don’t stop trading when your on a winning streak. “When your hot, your hot.”

26. Three strikes and your out! Don’t turn three losing trades in a row into six in a row. When you’re off, turn off the screen, do something else. “When you’re not, you’re not.”

27. Scalpers reduce the number of variables effecting market risk by being in a position only for seconds. Day traders reduce market risk by being in trades for a matter of minutes.

28. If you convert a scalp or day trade into a position trade, by definition you did not consider the risks of the trade.

29. Don’t ever fret about a missed opportunity. There is always another one just around the corner. Besides, several just happened that you didn’t even know about.

This entry was posted on Friday, August 26th, 2005 at 11:49 pm and is filed under Trading talk, Stock trading, Day trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.