Excerpts from "Finance Geeks" - How to reject greed!
The stock market crash of October 19, 1987. I closed all positions on October 19th and 20th because I felt like something was happening in the world that I couldn't understand. There may be many first rules of trading. I think the first rule is, don’t lose a lot of money for no reason. When you feel that you don’t understand or don’t understand, then leave the market, and don’t do it if you don’t understand.
Must be willing to make mistakes often. It's not a terrible thing to make a mistake, it's not a mistake. Make your best judgement, if wrong, make your next best judgement, and if you're wrong again, make your third best judgement. Doing so will double your capital.
Successful trainees are strong-willed, independent in character, understand that extremes turn out to be counterproductive, and are able to take positions when others don't. They all know self-discipline and discipline, so the size of their positions is appropriate. A greedy trader usually takes too large a position, and some of the most talented traders I know never manage to keep the money they make and put them all into positions. A trader at a commodity futures firm, I don't want to name him, I have the impression that he is a very talented trader who generates brilliant trading ideas and usually chooses the right market to trade. Intellectually, he knows the market better than I do, yet I keep the money and he doesn't.
Must be willing to make mistakes often. It's not a terrible thing to make a mistake, it's not a mistake. Make your best judgement, if wrong, make your next best judgement, and if you're wrong again, make your third best judgement. Doing so will double your capital.
Successful trainees are strong-willed, independent in character, understand that extremes turn out to be counterproductive, and are able to take positions when others don't. They all know self-discipline and discipline, so the size of their positions is appropriate. A greedy trader usually takes too large a position, and some of the most talented traders I know never manage to keep the money they make and put them all into positions. A trader at a commodity futures firm, I don't want to name him, I have the impression that he is a very talented trader who generates brilliant trading ideas and usually chooses the right market to trade. Intellectually, he knows the market better than I do, yet I keep the money and he doesn't.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.