Rule 1: If you have to look, it isn’t there.
Rule 2: Trends depend on their time frame.
Rule 3: Price has memory.
Rule 4: Profit and discomfort stand side by side.
Rule 5: Stand apart from the crowd at all times.
Rule 6: Buy the first pullback from a new high. Sell the first pullback from a new low. Trends often test the last support/resistance before taking off.
Rule 7: Buy at support. Sell at resistance. Trend has only two choices upon reaching a barrier: continue forward or reverse.
Rule 8: Trades that work in hot markets destroy accounts in cool ones.
Rule 9: Don’t confuse execution with opportunity.
Rule 10: Control risk before seeking reward.
Rule 11: Big losses rarely come without warning.
Rule 12: Enter in mild times, exit in wild times.
Rule 13: Perfect patterns carry the greatest risk for failure.
Rule 14: Trends rarely turn on a dime. Reversals build slowly.
Rule 15: See the exit door before the trade.
Rule 16: Don't count your chickens.
Rule 17: Don't believe in a company or its fundamentals. Trading is not investment.
Rule 18: Don't have a paycheck mentality.
Rule 19: Don't try to get even. Trading is never a game of catch-up. Every position must stand on its merits. Take your loss with composure, and take the next trade with absolute discipline.
Rule 20: Don't seek the Holy Grail.
Rule 21: Don't forget your discipline. Most traders fail due to a lack of discipline, not a lack of knowledge.
Rule 22: Don't ignore your intuition. Respect the little voice that tells you what to do, and what to avoid.
Rule 23: Don't project your personal life. Trading gives you the perfect opportunity to discover just how messed up your life really is.
Rule 24: Don't think its entertainment. Successful trading will be boring most of the time, just like the real job you have right now.
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