Trading Habits: 39 of the World\'s Most Powerful Stock Market Rules pdfdrive com

24. Remain flexible and go with the flow of the market price action.
Stubbornness, egos, and emotions are the worst indicators for entries and
exits.
Emotions and egos are the worst trading signals. The majority of market
participants operate based on their feelings rather than identifying the trend in a
market. You should focus on finding the trend, and then trading in the direction
of its accumulation or distribution. This will give you a substantial edge over
other, less disciplined market participants.
When your competition is selling late in a downtrend because they fear losing
money, you can buy with a great risk/reward ratio. When people are afraid to
buy a breakout of a price base to all-time highs, you can take the momentum
signal to buy high and sell higher.
Downtrends, uptrends, and range bound markets have different characteristics,
and successful traders identify what kind of market they are in and trade the
price action as it unfolds.
Get in the habit of taking good signals based on price action, and leave your
opinions and predictions at the door.

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25. A trader can only be successful after they have faith in themselves as a
trader, their trading system as a winner, and know that they will remain
disciplined.
Faith in yourself will come after you have done your homework, and you have
proven that you can be trusted to follow your trading plan with discipline. The
biggest reason new traders tend to fail in their first year, is that they put
confidence in their trading abilities before they have any competence in trading.
Faith in yourself as a trader is crucial for your success, but it has to be warranted
faith. You must have a trading system with an edge, you must manage your risk,
and you must have the self-control to avoid blowing up your account. Above all
else, when you learn what to do in a given situation, you must trust yourself to
do the right things in the heat of trading.
Without confidence, you will be unable to enter trades effectively, but with too
much confidence, you will trade too big and destroy yourself. Have faith in
yourself that you will not only do the right things, but you will also avoid the
wrong things.

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