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Thursday, September 16, 2004

Here's something that Woodie received in his email and just posted in chat:

1. I will not trade every day just because I feel as if I have to.
2. I will develop a proven trading system, and realize that one bad trade does not negate the system.
3. I will set up proper MONEY MANAGEMENT, use my exits, stops and not allow myself to get into hope mode. I will not change in an effort to create "just a little more" profit.
4. I will not let emotions sway my trade decisions.
5. I will approach trading as if it is a business. I will be strategic, and logical.
6. I will learn something every day, no matter how small, that will give me a greater trading edge.
7. I will keep a trading journal, and note when and why my analysis failed and succeeded. I will review this journal weekly.
8. I will not fight the market. I will capitalize on whichever direction the market is going.
9. I will take small losses rather than let them become large losses. I don't have to be correct with every trade.
10. I will become an expert in one area of trading, whether it be options, one certain stock, or an index. I will master every detail particular to those trades.
11. I will invest in my success, I will put in practice time, playback time or any thing else that will help me to be a good trader
12. I will act upon what the market is doing, rather than what I think it "should" be doing.
13. I will not allow myself to create trades or make up trades just so I'm trading as i know this will lead me to disaster.

These are nice affirmations to keep in mind, even to print out, tape next to the computer and repeat out loud every morning. Right now, I'm in the midst of fucking up a few of these rules royally, so let me get back to my catastrophic "prayer mode" trade. Back later...

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