David Blair, writer of The Crosshairs Trader blog, has compiled a list of simple, yet very fundamental truths for stock traders based on the letters of the alphabet. David is also the author of the excellent trading e-book, When 10 is Greater than 90.
A wise man chooses to do in the beginning what the fool is forced to do in the end.
Better to be wrong and rich than right and broke.
Create an atmosphere of confidence and you will never choke on the bone of contention.
Develop an edge and stick to it. If you are not living on the edge then you are falling off of one.
Enter the market prepared or you will exit impaired.
Forget the last trade or the market will steal your next one.
Giving in to emotional bias is akin to giving up.
He who chases three rabbits catches none.
If it sounds too easy to be true then it is neither easy nor true.
Just say no when the market has said yes one too many times.
Keep what you have by not keeping what you never intended to have.
Losers justify and winners rectify.
Make time for self.
Noise is the mother of doubt.
Obvious trades can lead to blind faith.
Poor execution can result in a broken disposition.
Quitting is not a fork in the road but a dead end street.
Reason looks for support in the past while judgment considers the weight of the future.
Stocks move first and ask questions later.
Timing the market is like winding a clock that has no hands.
Understand yourself first and the market last.
Voice your opinion in mute mode.
Wishers become has beens when what has been becomes a wish.
Xtra time in the market could spell disaster in the home.
Your ability to win is based on your willingness to lose.
Zoos welcome bulls and bears but pigs…
Source: David Blair, The Crosshairs Trader, October 6, 2009.