“Even if a trader isn’t wrong very often, the market is always right.”
For executives getting a hand In trading the market, it is important for them to note that both in trading and in life, there are risks and rewards. When a risk taken turns into a disappointment, it’s best to admit and learn from it. ”Being stubborn in holding a position will prevent someone from moving on. In fact, it can cause even more mistakes,” says Todd Mitchell, CEO, Trading Concepts Inc. Acknowledging where things went wrong and making corrections allows people to grow their trading skills, and their earning potential.”
This idea is Todd Mitchell’s #2 rule in his “20 Survival Skills for Traders” listed below:
1. Know the difference between trading and investing.
2. Don’t let losers run! Don’t be stubborn in holding a position. Remember, while you may not be wrong often, The Market Is Always Right. The best traders are the first to admit (to themselves and the market) that they made a mistake.
3. Trade only price pattern set-ups.
4. Trade for skill, NOT the money.
5. Concentrate on what you are trading.
6. Focus on your executions.
7. Model yourself after successful and experienced traders.
8. Be teachable.
9. Remember that even the best of the best traders lose money.
10. Use only one contract at the beginning.
11. When in doubt, get out (or stay out)!!
12. Learn the difference between gambling and trading.
13. Never, ever add to losing trades.
14. Don’t overtrade.
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