My Trading Plan

www.MarkJessing.com
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Basic Trading Assumptions

About trading stock options in US markets

  • The price will always change

  • All information, including insider information, is included in the price

  • Prices are not efficient, and are often pushed to irrational levels

  • The most important prices are determined during normal market hours, not during after hours trading

  • The closing price is established by professional traders

  • Prices during the first 30 minutes of trading are emotionally established

  • Prices thresholds tend to repeat themselves because the people trading the stock remember specific prices

  • Stock price behavior is determined by the professionals that trade it

  • The vast majority of day traders loose all of their money

  • The largest price moves tend to trend over several months

  • Wealthy institutions trade high volume and establish trends in the market

  • High volume trades will effect the price of the stock

  • It is impossible for the largest institutions to profit from day trading large positions in stocks

  • Nobody is ever as concerned about our trades as we are

  • Time value will go to zero as we approach expiration

  • Money only has the value that people place upon it

  • Money tends to be emotional for most people

  • Emotion inhibits excellence in trading

  • Following a system removes some emotion

  • Knowledge and experience mitigates risk

  • Accountability and trading logs improve performance

  • Wealthy people make decisions quickly and change them slowly

  • The best traders don't enjoy gambling

  • Things that a person continually thinks about effect their trading

  • Anything that is measured and tracked usually improves

  • There is no right and wrong in the market; short and long are equally beneficial

  • The current price is always the correct price