Investing for Survival---20 Rules
of Engagement
5. Discipline must always
trump conviction.
Regardless of how certain you feel about any particular bet, you must defer to the principles of discipline when trading. And never fall into the trap of believing that you’re smarter than the process; if you don’t stay humble, the market will do it for you.
Regardless of how certain you feel about any particular bet, you must defer to the principles of discipline when trading. And never fall into the trap of believing that you’re smarter than the process; if you don’t stay humble, the market will do it for you.
6. Respect the price action but never defer to it.
Our eyes are valuable tools
when trading, but if we deferred purely to the price action, stocks would be
"better" up and "worse" down, and that's a losing
proposition. Respect the volatility of the market and leave the blind ambition
for somebody else.
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