Bighog trading tips 3

From notebooks of trading tidbits collected over the years.

First one from a 1969 book on trading Commodities:
Rules can be forgotten! But once the trader has developed the ability to look at the major market symptoms and arrive at a valid judgement about it's technical health, he has (sorry, Nod, this was from 1969, ha) moved permanently into the elite group who put every confidence in skill and knowledge--- and let others depend on others and guesses and hunches.

Identify 1 or 2 tactics that consistently work, then refine them to result in highest probability within your own mindset of comfort, etc. Some of the best traders are successful because they trade only 1 strategy. You work your strat while controlling risk. Belveal, 1969.

Never SELL a dull mkt short.

You're either ahead of the mkt or you're running behind it. For most trading being late with the order can turn a possible profit into a loss. It's better to anticipate a trend change, a pivot level etc and be wrong while taking a small loss than it is to "wait" for a confirmation and be sure to have a small chance of winning. " I've never been a successful chaser of price." Kaufman

Anticipate---- Be ahead of the crowd.

The most fundamental concept is how to recognize what a chart looks like just prior to an important breakout.

When you think you can not win - you are done.

Playing defense when you should be playing offense.

You must be able to handle small losses. Losing is just part of the game.

No, no, no, NO hesitation at your numbers. It is not an option.

If winning trades should work immediately, then it must mean losers should be immediately dumped.

Is this trade you are in now getting hotter or colder? Always trade with reference points. This works within your technical tragets for a profit or a loss. Always have a worst case STOP and the only choice for the stop is to pull the trade out quicker.

STOPS are like taxi fare for a blind date. If he is a loser you can still get home safely.