10th Commandment of Profitable Trading- Aim for good not perfect

The tenth commandment of profitable trading is the most interesting. Most people look for the holy grail. What is the best strategy, the best set of rules, the best stock to buy, and the best that will make people rich. However, that search is a fool’s errand because you spend so much time searching for perfection that you don’t make money. If you’ve got a good trading strategy and follow it consistently with discipline, you’ll make money immediately. Yet if you spend years searching for perfection, you make nothing, but you could have made quite a lot of money and built your wealth with a good strategy. Therefore, you need a good, profitable strategy and to follow the commandments, and you’ll do well—any profitable strategy.

It’s one part of my complete guide to how to learn stock trading.

Once you find a strategy, you don’t want to keep tinkering with it, fine-tuning it, optimizing it, and trying to make it perfect because it will never be perfect. There is no ideal because the markets are very uncertain. This comes from a non-trading world, like the corporate world or education, university, or school. It’s hard to accept that there’s no correct answer. “Should I buy when the stock moves to this level or that level? Should I sell or set a stop-loss at 10% or 15%, or 20% below the entry price?” I said, “Well, there’s not one right answer for that. It’s all just trade-offs and probabilities.”

If you want a tested, rules-based way to trade instead of guesswork, that’s what I teach in the Trader Success System.

More of the 10 Commandments

• The 10 Commandments for Profitable Stock Trading
• 1st Commandment: Learn the Language
• 3rd Commandment: Personalize Your Approach
• 5th Commandment: Preserve Your Capital
• 6th Commandment: Reduce Your Risk
• 2nd Commandment: Use a System
• 7th Commandment: Write Your Trading Plan
• 8th Commandment: Diversify Multiple Ways
• 9th Commandment: Eliminate Mistakes