TRADING WISDOM FROM DR. DORN

Dr. Janice Dorn, aka The Trading Doctor, made some interesting comments this morning about trading and trading psychology:

1. On why doctors and lawyers (who are used to working within sets of rules) fail in their stock trading: "They (markets) move and they fluctuate. It's an open game. You choose if you want to play and you play by your own rules. You are master of your own destiny."

2. "Your brain will always lie (fool you), but not your heart. Listen to your heart".

3. Trading: "We do not trade the markets. We trade our beliefs and our money."

4. "Markets are not efficient nor are they random. We are buying and selling risk."

5. "Trading is 100% neurological. We design, test, backtest, execute, take profits, and cut losses. 50% of us want to lose money!"

6. "Many of us resist life."

7. "It's important for the trader to embrace the emotions."

8. "The markets communicate unique moments. We will always have that moment and will learn from it."

9. "Risk is the intersection of Danger & Opportunity."

Prepare for the worst, but expect the best.