(Money management is so absolutely vital to successful trading, and investing it cannot be expressed enough.)

2) The trend is your friend

The “trend is your friend" is an old trading expression that’s been around for generations, and is as true today as in past years.

The laws of physics states that a body in motion stays in motion, in same direction. This also holds true for market trends.

Market trends keep moving in same direction until they stop and reverse themselves.

So, if trend is up, you want to be "long" markets to profit from trend.

3) Do not argue with market

Many traders and investors have trouble accepting fact that market will always do what it wants to do.

If you are “long” market you want it to go up, but, if market decides it wants to go down...guess what will happen? That's right, market will go down.

This seems so obvious but many lose sight of this simple fact, and end up losing money.

Then, they blame market for their losses.

Jewelry, art, stamps, and collectibles are still other examples of investing where they are kept for a long time in hope their value appreciates. Trading

Trading is also investing but time frame for a return on that investment is a much shorter period, usually a matter of a few days or weeks.

The most obvious example would be day trading where a trader is in and out of a market same day.

Still other trading takes place over a period from a few days to a few weeks.

Most trading takes place with individual stocks and commodities, with commodity markets being most predominant vehicle.