1. Have a system and stick to it like Crazy Glue.
As a trader, I was a tape reader. But I was a tape reader with a niche: mid-cap stocks on the New York Stock Exchange. I watched the stocks trade, and I watched the quotes change, looking for an entry point. If a large order appeared on the tape, I'd buy myself a few hundred and see what happened. That was my system.
When you're trading, you have to have a system—rules that define which stocks you watch, and when you buy or sell. Whether you're buying undervalued large caps or short-term momentum plays, find a system that works and stick to it. There's a word for trading on tips or because a talking head mentioned it on CNBC: gambling