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Secret 12

Be skeptical

Another way to put this is that it pays to be a contrarian. To be successful, you need to be a student of human nature and do the opposite of the general public. Sell on your first clues of weakness; don't wait until everyone is bailing out. If you're day trading the S&P, this rule could apply to moves of 15 minutes. If you're swing- trading, this rule could apply to a move lasting three days. It certainly applies to those moves lasting weeks or months. And be wary of tips. The tip-giver might be well intentioned, but tips invariably influence you in the wrong direction. Remember, the market doesn't beat you—you beat yourself. Following tips and not the market is just another sign of human weakness.


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