The 12 Pillars of Trading & Investing

Learn the 12 pillars of trading and investing, focusing on risk management to protect capital and pursue profit before entering each trade with practical strategies for active trading.

Develop plan b by preparing for up, down, and sideways markets with distinct trading and investing strategies for each scenario, because protecting downside drives success.

Pilot purchases reduce risk by using one third to half of the intended amount and spreading across multiple buys, tying sizes to trade criteria and maintaining emotional discipline.

Pyramiding trains investors to average upwards by buying less on rallies, building a momentum-driven position while reducing risk, using a train stop and avoiding falling knives.

Position sizing protects capital by using a percent of your portfolio, balancing risk and invested amount, and diversifying across up to ten stocks to avoid ruin.

Protect your principal through principal banking, turning profits into risk-free money to play. Use trailing stops and cut losses quickly; don't lose money, and let winners run.

Evaluate stocks with a top-down or bottom-up approach, focusing on safety, profitability, and shareholder friendliness, while using fundamental and technical filters to gain an edge in an efficient market.

Master psychology to trade with mechanical discipline, replacing gut feelings with analytics. Recognize the fear–greed cycle, trade without expectations, and cultivate emotional intelligence for better profits.