Secret 12
Be skeptical
Another way to put this is that it pays to be a contrarian. To be successful, you need to be a student of human nature and do the opposite of the general public. Sell on your first clues of weakness; don't wait until everyone is bailing out. If you're day trading the S&P, this rule could apply to moves of 15 minutes. If you're swing- trading, this rule could apply to a move lasting three days. It certainly applies to those moves lasting weeks or months. And be wary of tips. The tip-giver might be well intentioned, but tips invariably influence you in the wrong direction. Remember, the market doesn't beat you—you beat yourself. Following tips and not the market is just another sign of human weakness.
Get Trading Commodities and Financial Futures: A Step-by-Step Guide to Mastering the Markets, Third Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
