Alan Farley, my colleague over at, put together a list of "25 Pearls of Wisdom for Traders."

Here are my favorites:

· The best trades come when the crowd leans the wrong way. In other words, the majority piles in one way but profits come from trading it the other way.

· Market direction is only as strong as the leadership that guides it. Stocks play follow-the-leader even when the charts tell a different tale.

· Follow the professionals in quiet times and the public in wild times.

· Don’t trust others’ opinions. It’s your money at stake, not theirs.

· Good timing on bad stocks makes more money over time than bad timing on good stocks.

Our styles are very different — I’m much less of a swing trader than him — but Alan’s got a good eye for pithy wisdom.

25  Pearls of Wisdom for Traders
By Alan Farley , 11/18/2004 12:02 PM EST

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

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