Make a million in 2004 - Barnetpeter's ten trading suggestions

Said with tongue in cheek - but here are a few suggestions from someone who has been interested in the SM for more years than I care to remember. Other suggestions and tips on how to improve are very welcome.


1 Read this book twice - mark the best passages



I would particularly point to how JL never got upset with the markets or with a price and how he accepted huge losses as a "cheap" lesson.

2 Have all the tools you will need ready. Warrants, CDF accounts, spread betting - you need them all.

3 Learn the basics; you HAVE to be able to read a balance sheet, understand the fundamentals of charting etc.

4 Ignore "tips" especially on BB's like this; unless you can get in early and get out quickly. Even the market makers are beginning to ramp the trash on ADVFN (allegedly)

5 At the first sign of trouble, dump; "never too low to sell". Don't let a loss turn into a disaster. In general terms, buying falling stocks and trying to hit the low point is a mugs game. The pro trader will look first at the stocks making new highs not lows.

6 Run your winners hard but do not get attached to them. Nothing goes up forever.

7 Understand your style. Can you really sleep soundly with £20,000 of short-dated securities?

8 Once you have sold out, never worry about the stock going up further. Its done so move on. You will never make serious money if you worry about what other people might make.

9 Learn from your mistakes. Quickly. There are a million chances to make money every single day in the markets. No good if all your cash is stuck in a pile of dung is it?

10 Ignore "advice" from people you do not know; including this thread! Particularly take no notice of those who hate any suggestion that a particular stock they hold might actually be no good. The average private investment in Marconi was £77,000. They watched it go down and down and ... got back about £100. Couldn't possibly go broke could it? Er, yes.


Personally, I am good on points 7 and 8, improving on 5, not so hot on 6.