6 rules from legendary traders that everyone should know:
1.Learn to be patient.
Mark Minervini won the 2021 US Investing Championship with a +338% return and had 4 months with returns of less than 5%! What Mark did better than anyone else was to be patient enough to wait for the perfect environment and then attack.
2.Always stay disciplined.
Jesse Livermore amassed (and lost) several fortunes through his discipline (and lack thereof). As a trader, you must stick to your plan even when it seems impossible.
Always set stop losses!
Nicolas Darvas was able to trade from the other side of the world as a professional dancer because he had an unbreakable attitude towards risk management. If a stock didn't behave properly, his stop loss protected him without him having to think about it.
4.Long-term trends are more important than short-term fluctuations.
William O'Neil traded mainly on a weekly chart to reduce the "noise" in his investments.
5.Price action tells you everything.
Everything you need to know about a stock's fundamentals and news is revealed in its price action.
6.never lower the average!
Lowering an average is one of the easiest ways to lose everything in the market. As the great Paul Tudor Jones says, only losers average out.