Day Trading Slogans Worth Remembering
A number of useful financial market slogans have stood the test of time, and their wisdom is frequently passed down orally from experienced traders to their novice apprentices.
Some of these sayings might seem so obvious that they appear humorous, while others wisely warn of the hidden perils of letting your emotional predispositions rule your trading decisions.
Anyway, without further ado, the following sections list and describe some key trading adages that day traders can usually benefit from incorporating into their trading systems.
The Trend is Your Friend
Many successful day traders have taken this important trading adage to heart and refuse to take positions that go against the prevailing market trend.
Don’t Marry Your Position
This maxim reminds day trading novices that their emotions and lifetime commitment are best kept for their spouse and family, not for their trading activities.
Basically, it advises a day trader to keep their trading decisions as coolly objective and unemotional as possible and to avoid committing too strongly or emotionally to any one trading position.
Buy Low, Sell High
This humorously obvious maxim covers what just about every day trader wants to do all day long, but far too few ever manage to achieve.
The Market is Never too High to Buy Nor Too Low to Sell
Many bold day traders have found to their trading account’s ultimate detriment that bucking the trend by selling when the market reaches a new high or buying when it reaches a new low can often put them in a losing position.
Traders Who Pick Bottoms Get a Handful of Crap
Similar to the previous adage, this humorous classic warns that it is better to avoid trying to pick the bottom of the market to buy at (or the top to sell at either). Instead, it is considered preferable by day trading pros to wait for the market to signal a reversal.
Cut Your Losses Short, but Let Your Profits Run
This granddaddy of all day trading maxim encapsulates the essence of appropriate money and risk management.
Basically, you may not be able to call the market direction accurately every time or even most of the time, but if you follow this day trading rule, you can still make money overall when trading.
Bulls and Bears Make Money, but Pigs Get Slaughtered
This popular market aphorism refers to the typical stock market meaning of bulls as those who think the market is going up and bears who think that the market is going down.
Each of these market animals makes money at one time or another, but the greedy pigs who do not know when to take their profits often end up turning their winning trades into losers.