Alan Farley, my colleague over at RealMoney.com, put together a list of "25 Pearls of Wisdom for Traders."
Here are my favorites:
· The best trades come when the crowd leans the wrong way. In other words, the majority piles in one way but profits come from trading it the other way.
· Market direction is only as strong as the leadership that guides it. Stocks play follow-the-leader even when the charts tell a different tale.
· Follow the professionals in quiet times and the public in wild times.
· Don’t trust others’ opinions. It’s your money at stake, not theirs.
· Good timing on bad stocks makes more money over time than bad timing on good stocks.
Our styles are very different — I’m much less of a swing trader than him — but Alan’s got a good eye for pithy wisdom.
25 Pearls of Wisdom for Traders
By Alan Farley
RealMoney.com , 11/18/2004 12:02 PM EST