Trading & Investing: Strategy and Psychology

Successful investing depends heavily on behavior. Define a time horizon, create rules for entries and exits, and use position sizing to survive volatility. Automated, rules-based approaches remove emotional mistakes.

Rules of thumb

• Risk only a small, consistent percentage per trade or idea.
• Use cold, mechanical stop-losses to control downside.
• Keep detailed records to measure performance and refine your strategy.
• Avoid excessive leverage; it magnifies losses as well as gains.