Someone elses trading commandments

I have my own list of 10 commandments which i feel are accurate toward my team and tape reading. My list is more appropriately called "10 ways to preserve capital" This list delves deeper into the emotions of trading which mine just grazes. This list is just as powerful.

The Ten Trading Commandments

Respect the price action but never defer to it.
The action is an important element when trading but if you defer to the flickering ticks, stocks would be “better” up and “worse” down—and that’s a losing proposition.

Discipline trumps conviction.
No matter how strongly you feel on a given position, you must defer to the principles of discipline when trading. It will differentiate your performance over the course of time.

Opportunities are made up easier than losses.
It’s not necessary to play every move, it’s only necessary to have a high winning percentage on the trades you choose to make.

Emotion is the enemy when trading.
Emotional decisions always have a way of coming back to haunt you. It’s that simple.

Zig when others Zag
Sell hope and buy despair. In other words, take the other side of emotional disconnects in the market.

Adapt your style to the market
At various junctures, different approaches to the market are warranted. Applying the right trading methodology is half the battle.

Maximize your reward relative to your risk
If you’re patient and pick your spots, edges will emerge that provide a more advantageous risk/reward profile.

Perception is reality in the marketplace.
Identifying the prevalent psychology is a necessary process when trading. It’s not what is, it’s what’s perceived to be that matters.

When unsure, trade “in between”
Your risk profile should always be a reflection of your thought process. Take what the Minx will give you and don’t press.

Don’t let your bad trades turn into investments.
Rationalization has no place in trading. If you put a position on for a catalyst and it passes, take the trade—win or lose.

taken from:
http://bigpicture.typepad.com/comments/2005/05/the_ten_trading.html