1.) Respect the price action but never defer to it.
2.) Discipline trumps conviction.
3.) Opportunities are made up easier than losses.
4.) Emotion is the enemy when trading.
5.) Zig when others zag.
6.) Adapt your style to the market.
7.) Maximize your reward relative to your risk.
8.) Perception is reality in the marketplace.
9.) When unsure, trade “in between.”
10.) Don’t let your bad trades turn into investments.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.