1. Trade with a plan and stick to it.
2. Trade with the trend. The trend is your friend!
3. Use stop loss orders whenever practical.
4. When in doubt, get out!
5. Be patient., never over trade.
6. Let your profits run; cut your losses short.
7. Never let a profit run into a loss.
8. Buy weakness and sell strength. Be just as willing to sell as you are to buy.
9. Be an investor in the early stages of bull markets. Be a speculator in the latter stages of bull markets and in bear markets.
10. Never average a loss-don’t add to a losing position.
11. Never buy just because the price is low. Never sell just because the price is high.
12. Trade only liquid markets.
13. Never initiate a position in a fast market.
14. Tips are for waiters. Trade with the trend not your friend.
15. Always analyze your mistakes.
16. Beware of “takeunders”. (Bad mergers)
17. Never trade if your success depends on a good execution.
18. Always keep your own records of trades.
19. Know and follow the rules!
“The purpose of rules is to make executions as objective and consistent as humanly possible.”
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