Arthur Huprich has been the head of market analysis for Raymond James & Associates since 2006. He has been in the Financial Services industry for over 35 years and is one of approximately 1,500 CMT Lv3 holders worldwide.


He has been a frequent guest lecturer at Loyola College of Maryland and Schiller International University - Florida campus and is a frequent guest speaker for news organizations such as Investor's Business Daily, The Technical Analyst and The Washington Post. He is currently the chief analyst of Day Hagan Asset Management.

Here are his 27 pieces of advice, which I think you need to "take your heart in" - of course, with like-minded traders.

1. You Shouldn't Trade Against the Trend.

2. A heavy portfolio with underperforming stocks rarely outperforms the overall market.

3. Nothing new on Wall Street. This is for sure! Because speculation is "as old as the earth". Whatever happens in the stock market today has happened before and will continue to happen many more times, largely due to human nature.


4. Sell while you can, not when you have to.

5. Cows can make money, bears can also make money, only "pigs" are slaughtered.

6. We cannot control the stock market. The best we can do is try to understand what the stock market is trying to tell us.

7. Understanding crowd psychology is just as important as understanding the fundamentals of economics. That is your path to success.

8. Learn to cut your losses quickly, don't expect to be right all the time and learn from your mistakes.

9. Don't think you can consistently buy at the bottom or sell at the top. This is rarely done consistently.

10. When dealing, be objective. Don't predict anything. The big names in trading all have one thing in common: The ability to turn things around quickly when the environment changes.

11. Dead fish can float with the current. However, only a strong fish can swim against the current. In other words, what seems "hard" at the time often turns out to be true, over time.


12. Even the most beautiful chart pattern can go wrong for no apparent reason. So, never stick to a certain position to death, but always be vigilant in managing risks and expectations. Use volume as a guide.

13. When trading, if a stock doesn't perform as expected in a short period of time, close it or tighten your stop loss.

14. When a stock is moving in the right direction and the crowd is coming in, don't rush to take profits on all positions. Instead, exit slowly.

15. Never let a profitable trade turn into a loss, and never let a scalping position turn into a long-term trade because it is losing.

16. Don't buy a stock just because it has plummeted from its peak and now has a better value, wait for the market to recognize its value first.

17. Don't trade the average of losses. Adding to a position that is losing heavily will lead to ruin. Ask the Nobel laureates of Long-Term Capital Management about this experience.

18. Emotions are the great enemy of investors and traders. Be patient and don't trade haphazardly. There are times when we don't need to trade.

19. Illusion is a decisive factor in hindering your financial wealth.

20. Do not make investment or trading decisions based on advice. Advice is something you should leave the people who give it advice.

21. There is no smoke without fire: In other words, bad news usually doesn't happen once, it happens more and more often after.

22. Always acknowledge that losing money in the stock market is part of the investing process. It is important not to let it turn into a huge loss as this can wreak havoc on your portfolio.

23. Remember: It's not what you sell that keeps going up that makes you lose money. It's the stuff you don't sell that keeps dropping in price.

24. Your success rate will improve when technical analysis confirms fundamental analysis.

25. Many people have realized that, from 1999 to 2010, during a sideways S&P 500, they could lose money even by owning the best company stock. However, they can make money in the short term even on stocks with the most mediocre fundamentals. Timing with technical analysis is extremely important.

26. Try to keep your life priorities as aligned as you can. Don't let the greed factor that Wall Street creates overpower other important areas of your life. Know how to balance the physical, mental, relationship and financial needs in life.

27. Technical analysis is a bag of wind, not a crystal ball. It is a skill that improves with experience and time. Always learn, never stop, because there is always someone smarter than you! (The wind bag is in the illustration above, it will gradually enlarge when the wind is strong).