Friday, April 3, 2009

Mind Matter

1) Think in terms of the long run when trading.

2) Avoid outcome bias.

3) Believe in the effects of trading with positive expectation.

4) The secret of trading and of the Turtles' success is that you can trade successfully by using ideas and concepts that are well known and have been around for years. But you have to follow those rules consistently.

5) Trade with an Edge : Find a trading strategy that will produce positive returns over the long run because it has a positive expectation.

6) Forget the past, don't berate for mistakes you made.Avoid recency bias.The ability to avoid recency bias is an important component of successful trading.

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