Emotion - self encourage

1) Losing is part of the business

2) There is risk in trading; there is risk in NOT trading as well.

3) There were times no matter how you picked you would lose; also there were times no mater how you picked you would win

4) Have faith - think big; don't be a chicken - following too sensitively

Strategy - What affects stock price

1) Internal Forces - Fundamental analysis; EPS; Ratings; Projection; News

2) Trading Activities - Technical analysis; Gold rush; Panic sell off; Profit taking; Bargain shopping; Stock purchase plans

3) External Forces - Market Weather; Marco Economy; Interest Rate; Politics; War; Disasters

Concept - Risk

What is Risk?
1) Risk is unknown danger; possibility of loss
2) Risk can be calculated, limited, and managed
3) Risk can be pre-determined
4) Risk exists even when not doing anything

Concept - Trading

What is trading?
1) Trading is betting the future.
2) Trading is an on-going, cross-field game with mass of players.
3) Trading could have many outcomes; will trigger many emotions.

What is NOT trading?
1) Trading is not an hourly paid job.
2) Trading is not a competing game.
3) Trading is not an exact science.

Rules - Golden Rules on Stock Trading

1) Ride the trend. Let winners run
2) Use stop orders. Cut losers quickly
3) Buy the rumors (sell the facts)
4) Don't over-trade. Make few key moves. Have long-term perspect
5) Focus: Follow a few stocks, don't analyse too much information
6) Diversify (sectors, commodities, bonds, global)
7) Buy liquid stocks
8) Go where the HOT-MONEY's go
9) Buy value/bargain stocks (investments)
10) Keep doing what worked in the past

11) Don't be ignorance, always think ahead - what could be next?
12) Don't be a chicken, don't become too sensitive, don't do nothing