Great Lessons from Wall Street Legends

Allow me to begin by saying that I have an insatiable love for the capital markets. The operations of the markets are inspiring on both a personal and professional level. As any good professional, I’ve been humbled by my trials and tribulations in my work.

My journey and continued education in capital markets has helped me start several successful businesses which include www.SarhanCapital.com and www.TheSarhanAnalysis.com. In our era, where information is one’s most valuable asset, my constant market analysis helps me stay sharp.

Over the past decade, I have studied many of the legends of Wall Street and have noticed several overlapping similarities in their thinking. The following list outlines critical components that many of the best investors/traders share, regardless of their investment style or background (these are not in any particular order):

  • Trade on what you see happening, not on what you think will happen. (i.e. trade in the now)
  • Always keep your losses small and never argue with the market, you will always lose.
  • You don’t need to a lot of money to do well, you need to have rules and follow them!
  • Only trade when you have an edge. If your edge is not clearly defined- stay away.
  • Develop a sound set of money management rules.
  • Focus on what matter most, your bottom line.
  • All your positions should pay you to be involved. If they don’t, something is wrong.
  • Study and learn history, otherwise you are doomed to repeat it.
  • Take responsibility for all your actions, do not make excuses.
  • Do not try to pick tops or bottoms, instead capture the bulk of the move.
  • No one gives permission. Seize the moment.
  • Do more of what works and less of what doesn’t.
  • Hard work, focused dedication and drive are vital to being successful.
  • Post analysis- be your biggest critic.
  • Plan for every possible outcome, then trade your plan.
  • Separate your emotions from your decision making process.
  • Be positive and happy. Develop a spirit of opulence. Life (and the market) is full of good.
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2 replies
  1. Forex News
    Forex News says:

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