When new traders ask me what to read I often recommend anything by Jack Schwager @jackschwager , Steve Burns @SJosephBurns , Dr Elder , Van Tharp @vantharp , William O’Neil @williamoneilco and Mark Douglas.
Who would you add to the list?
Professional traders:
Manage risk
Stay humble
Trade with an edge
Continuously improve
Know they can be wrong
Focus on what they do best
Never let ego get in the way
Know when to stay out of the markets
Rules I built a 38-year career on...
1. always use a stop loss
2. define your stop before you enter
3. never risk more than you expect to gain
4. nail down decent profits
5. never let a good size gain turn into a loss
6. never average down
7. never get bold when running cold
There are 5 possible outcomes for your trade:
1. Breakeven
2. Small win
3. Small loss
4. Big win
5. Big loss
Eliminate #5 and you’ve just taken a big step forward.