Here are 10 lessons I learned in 2015. Some are new, some I had to relearn:
1. I am most creative and work better after a workout – after a run or some other aerobic exercise.
2. My best swing trade ideas are usually profitable almost immediately after I enter them. Those stocks that don’t follow through and go sideways, end up costing me money on average. Such realization helps me to cut my losers quickly and to add to my winners.
3. No market approach works all the time. I knew that before, but 2015 cemented it in my mind. I even wrote a whole chapter on it in my book “The 5 Secrets to Highly Profitable swing trading.
4. Drawdowns are inevitable, but their size could be managed.
5. Market timing is even more important than equity selection in a range-bound choppy market like 2015. There are times to be extremely aggressive and leveraged in the market. There are times to play defense and stay mostly on the sidelines.
6. Money is always going somewhere.There are always trends, but not all of them are easy to ride.
7. Revenge trading usually does not work. It is better to take some break from the market.
8. Never say never. Never turn a trade into an investment.
9. One good trade a day could allow you a comfortable life, but you might need to have 2-3 small losses before you get to that trade. Be prepared. Have a list of stocks in play.
10. Being aware of where the general market is in its price cycle is extremely important.
What are your market lessons for 2015?