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The price will always change
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All information, including
insider information, is included in the price
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Prices are not efficient, and
are often pushed to irrational levels
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The most important prices are
determined during normal market hours, not during after hours trading
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The closing price is
established by professional traders
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Prices during the first 30
minutes of trading are emotionally established
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Prices thresholds tend to
repeat themselves because the people trading the stock remember
specific prices
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Stock price behavior is
determined by the professionals that trade it
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The vast majority of day
traders loose all of their money
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The largest price moves tend
to trend over several months
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Wealthy institutions trade
high volume and establish trends in the market
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High volume trades will
effect the price of the stock
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It is impossible for the
largest institutions to profit from day trading large positions in
stocks
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Nobody is ever as concerned
about our trades as we are
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Time value will go to zero as
we approach expiration
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Money only has the value that
people place upon it
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Money tends to be emotional
for most people
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Emotion inhibits excellence
in trading
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Following a system removes
some emotion
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Knowledge and experience
mitigates risk
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Accountability and trading
logs improve performance
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Wealthy people make decisions
quickly and change them slowly
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The best traders don't enjoy
gambling
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Things that a person
continually thinks about effect their trading
Anything that is measured and tracked usually improves
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There is no right and wrong in the market; short and long are equally beneficial
The current price is always the correct price