Here are five tips I'd like to pass on to help you in 2009:
1. Be honest and admit mistakes quickly. Too many people in finance these days are having problems fessing up and it not only hurts their reputation. It hurts their business and performance too!
2. Learn from your mistakes---even more important than admitting them, you must take it to the next level and learn, unlike value investors who just keep adding to their losing positions in Bank of America (NYSE: BAC), General Electric Co. (NYSE: GE) and Goldman Sachs Group (NYSE: GS).
4. You don't need to trade every day, week or month. Don't be afraid to just sit in cash and wait this uncertainty out. Too many people are listening to marketers interested in commissions rather than performance. By looking at my trades, you'll find I only trade 1-2/week and that gives me time to have a life too! (I'm blogging this during my month-long Europe vacation).
5. Respect technical indicators over manipulative PR. With Apple Inc. (NASDAQ: AAPL) testing key support at $80, don't expect a huge bounce or drop here. Wait for a confirmed breakdown below $79 and go to the casino rather than buy into that chart pattern and the blatant disregard for the truth regarding Steve Jobs' health.
Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund