10 Tips For Stock Traders and Investors

David, over at ETF Digest has a very nice list that I think that we can all learn from…even if we are long term investors and not market traders.

Here is some advice that we may all take advantage of from time to time.  These points have become especially true when investors in their 20’s and 30’s are living through their first true bear market situation.

The Traders Top 10

1. Make Every Indicated Trade Every Time

2. Turn Off The TV During Market Hours

3. Market Sector Rotation Is A Fact Of Life, So Diversify

4. Accept Your Trading Losses As A Cost Of Doing Business

5. To Avoid Severe Losses, Stocks Must Be Traded

6. Have Respect For The Successful Methods Of Others

7. You Don’t Need A PhD To Make Money In The Markets, But You Do Need A Good Feel For The Trigger

8. At Any Given Time, The Market Can Make Anyone Look Like An Idiot. Always.

9. If You Have To Forecast, Forecast Often.

10. Things Change.

Who These Points Are Most Useful For

I have to say that a lot of these are more apt to be useful for investors/traders with shorter time frames, but there are a few gems that us long term investors can take away as well.

One that I have certainly put into practice is #6.

I do know that there are a lot of ways to make money in the markets and we must find the style that best suits us in order to be consistently profitable.  Not everyone is a long-term dividend growth investor and not everyone is a day trader.  However, there are many, many variations of investors in between that can and are making money in the market.

We must find a style that suits both our goals for making money and our personality.  This is obviously easier said than done.

Which one(s) of these points hit home for you?


  1. There is a lot of truth in #8, #10 and #6. However, I think the author is contradicting himself between #6 vs #4, #5, #7 – the implication is you have to trade to make money.

    Best Wishes,

  2. D4L,
    You are correct…it does appear that there is some contradiction in the list. My biggest issue comes with #5 and is just a matter of semantics. I do think that stocks must be sold to avoid large losses, but I don’t think that stocks MUST be traded.
    Thanks for the comment.

  3. Tyler: We are on the same page with #5. I got out of C back in Nov. to avoid a big loss, but I don’t consider myself a trader.

    BTW, I really like the new look of your site. Very nice!

    Best Wishes,

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