When it comes to trading, I don’t believe in the following three words: should, could, and would.

These are probably the most detrimental words in any trader’s vocabulary. Every time any of those words creep up into your mind, it means that you should not be doing anything. Doing something because you think you “should” will mean that you don’t want to do it in the first place. Try to stay away from trades that you think you “should” be in. Try to stay away from thinking like “I could have taken this trade,” “I would never take my profits here,” “If only I could be right next time,” etc. Also known as wishful thinking, this type of thinking is the one you should avoid.

As Jim Rogers says, “Never act upon wishful thinking. Act without checking the facts, and chances are that you will be swept away along with the mob.”