I am reading about stock market traders. This is a world in which I have never spent an iota of time. But there are some lessons that carry over to any venture whether it be business or personal.
1. Patience. Classically market traders who fail (and even those who succeed) sell too quickly. On the other hand when things are going down, they often hang on too long.
2. Don't get attached to "things". Stock trading is both an art and a drug. It is an up and down game with big mood swings especially until you get the hang of it. Stock traders to show some of symbol of success buys fancy cars, homes and even airplanes. Things they lose when the market goes down and they get wiped out. You don't need a vacation home in Hawaii. That's what condo rentals and hotels are for. Stay lean.
3. Get out of the market now and then just to clear out the pipes. When you are in, you often can't see clearly. Get out when your gut tells you to. You can get back in later on.
4. Learn from others but go it alone. This is critical. No two people do it exactly the same. If you hook up with someone who is a success, listen and learn from them but don't worship at their alter. To be successful, you have to go it alone and trust your gut and feel.
5. The sound of panic and success in the market are often not what is really happening.
6. When things are going well, anyone can be successful. When things are going badly, the good ones either sell short or just get out. In any case stay lean and mean.
7. Never bet everything on one play.
8. Nothing goes up forever but sometimes the bottom can be very permanent.
9. Research and know your market.
10. You won't do well at something if you aren't passionate about it. The greatest traders were drawn into the game. They gave up education, safe careers and the opinion of others so that they could play in the market.
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