Do what you understand.
Simple as it is, failure to abide by this principle has been the doom of countless traders. In general, if you’re unsure that you know what you’re doing, and that you can defend your opinion with strength and vigor against critics that you value and trust, do not trade. Do not trade on the basis of hearsay or rumors. And do not act unless you’re confident that you understand both the positive consequences, and the adverse results that may result from opening a position.
“You have to know that taking a loss is part of the game and you need to embrace it. If you can’t take a loss and accept you were wrong, you will never be a successful trader.”
“A trader can use one or a combination of strategies in his trading portfolio, depending on his personality. There is no “one” strategy that is better than the other.”
Do not believe in traditions because they have been handed down for many generations.
Do not believe in anything because it is spoken and rumored by many.
Do not believe in anything simply because it is found written in your books.
Do not believe in anything merely on the authority of your teachers and elders.
But after observation and analysis, when you find that anything agrees with
reason…then accept it and live up to it.