5. Anything can happen
A common mistake made by beginning investors is to make assumptions about what we think will happen today, either to an individual stock or to the market as a whole. Once we have made those assumptions, it colors our trading for the day – so rather than reacting to what the market is doing we are reacting to our assumptions. If we approach the day with an open mind, and allow the market to tell us what to do instead of the other way round, we will become more successful traders.
6. Think twice before you press that button
There are two big buttons on my trading screen. One is colored green, and is marked ‘Buy’; the other is colored red, and is marked ‘sell’. Sounds easy right? I can promise you that, in the excitement of a trade, it is quite possible to hit the wrong button and to buy when you mean to sell, or vice versa. So, for every trade, just pause before you act and ask yourself, “Are you sure?”
More to follow...