10-Point Stock Trading Manifesto

1. Buy And Hold Is Dead. 
2. Value Investing Has Been Discredited: Bill Miller lost 58% in 2008 after beating S&P for 15 years!
3. You Can’t Just “Buy the Market”: U.S. demographics don’t support the return of a secular bull market à la 1982-2000. 
4. Leverage Is A Four Letter Word.  Leverage can increase volatility excessively; with a meaningful edge it is not necessary.
5. Focus On Absolute Returns: There is no comfort in having “only lost 30%” when the market is down 45%.  Generate returns in all cycles.
6. Trade Long And Short: Engineer strategies to profit from both bull and bear markets
7. Stock Selection Is Key: Build your book from those names that will outperform or underperform the market.  Ignore the rest.
8. Work Without Bias: You are the weakest link in the chain.  Take a systematic approach.
9. Manage Risk: You must have a method to measure and control risk.  Otherwise it’s only a matter of time before you blow up.
10. Never Confuse Luck With Skill.  Trading is a problem of uncertainties, not of probabilities.  Plan and operate accordingly.

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