Investing Rules to Live By

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There’s no such thing as certainty – or sanity – on Wall Street. But with a solid plan in place, you will increase your odds of success.

One of the greatest issues facing investors and traders today is a real lack of discipline. Many rush into blind momentum. Some fail to use stop losses and trailing stop losses.

Others think it’s game.

It’s not. And if you’re not careful, you will lose everything. I’ve seen it happen.

A friend of mine made a 500% gain on a trade. I told him to bank it.

Instead, he used all of the newfound cash on the very next trade, which lost 90%.

He had no stop loss. To him, the stock was a “can’t lose.”

But there’s no such thing. If some one tells you a stock “can’t lose,” ignore it.

Successful investors will always try to remove emotion from trade. If a trade hits a stop loss, they’re out. No questions asked.

Successful investors have lower expectations. They know Wall Street isn’t a get rich quick scheme. They are well aware that big money comes with patience and proper due diligence.

And most of the time – most – they won’t risk more money than they can afford to lose.

Beginners have a hysterical tendency to risk the house. When they lose that house, though, there’s nothing. Wall Street took it.

Failure to plan can – and oftentimes will – lead to unnecessary loss.

Plan ahead and you’re ahead of the game.

It’s about the rule you abide by with each trade. Any one can trade a stock.

But it’s takes a disciplined trader to trade that stock well.