Monday, December 7, 2009

What I believe by Jimmy Koh (adapted partly from The New Market Wizards by Jack D. Schwager):

1) The markets are not random because they are based on human behavior and human behavior especially mass/herd behavior as seen in the stock markets are not
random. It has never been and it probably never will be.

2) The efficient market hypothesis is total rubbish and any academic who claims otherwise is an idiot.

3) There is no Holy Grail or grand secret to the markets. There is only hard work, discipline and consistency.

4) There are a million ways to make money from the markets. The difficult part is you have to stick to one and obey only the rules of that one method.

5) There is only one constant in the markets and that is change.

6) The secret to success in the markets lies not in discovering some incredible indicator or elaborate theory. The secret to success lies within you. In fact, I know of people who had traded profitably without any indicator.

7) I believe good traders are not born as but nurtured.

8) To excel in trading requires a combination of talent and extreme hard work; the same combination required for excellence in any field. Those seeking success by buying the latest program or by following the latest tip, will never find the answer because they haven’t understood the question.

9) Being a good trader is a matter of hard work, skill (which comes after lots and lots of hard work) and discipline, NOT luck.

10) Success in trading is a worthy goal but it would be worthless if it is not accompanied by success in your life and shared with your loved ones.

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