Classic Trading Rules - there are way too many, but some great ones.
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Recently A member of Silicon Investor posted these Classic Rules.
Classic Rules of Trading by Linda Bradford Rascke
Time Tested Classic Trading Rules for the Modern Trader to Live By.
A senior trader collected these rules from classic trading literature throughout the twentieth century. They obviously withstand the age-old test of time.
I'm sure most everybody knows these truisms in their hearts, but this
list is nicely edited and makes a good read.
1.Plan your trades. Trade your plan.
2.Keep records of your trading results.
3.Keep a positive attitude, no matter how much you lose. (PMA as Jackel would say)
4.Don't take the market home. (huh?? I take it EVERYWHERE!!)
5.Continually set higher trading goals.
6.Successful traders buy into bad news and sell into good news. (as Mex says, "when dogs buy, we sell, when dogs sell, we buy)
7.Successful traders are not afraid to buy high and sell low.(not afraid, just don't like to do it :-) unless shorting)
8.Successful traders have a well-scheduled planned time for studying the markets.
9.Successful traders isolate themselves from the opinions of others.(LOL, then they stay away from SI)
10.Continually strive for patience, perseverance, determination,
and rational action.
11.Limit your losses - use stops! (the danger here is MM's "shooting out the stops")
12.Never cancel a stop loss order after you have placed it!
13.Place the stop at the time you make your trade.
14.Never get into the market because you are anxious because of waiting.
15.Avoid getting in or out of the market too often.
16.Losses make the trader studious - not profits. Take advantage of
every loss to improve your knowledge of market action.
17.The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.
18.Always discipline yourself by following a pre-determined set of rules.
19.Remember that a bear market will give back in one month what a
bull market has taken three months to build.
20.Don't ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves against you 20% from your peak profit point.
21.You must have a program, you must know your program, and
you must follow your program.
22.Expect and accept losses gracefully. Those who brood over
losses always miss the next opportunity, which more than likely will be profitable.
23.Split your profits right down the middle and never risk more than
50% of them again in the market.
24.The key to successful trading is knowing yourself and your stress point.
25.The difference between winners and losers isn't so much native ability as it is discipline exercised in avoiding mistakes.
26.In trading as in fencing there are the quick and the dead.
27.Speech may be silver but silence is golden. Traders with the golden
touch do not talk about their success. (LOL except on SI)
28.Dream big dreams and think tall. Very few people set goals too high. A man becomes what he thinks about all day long.
29.Accept failure as a step towards victory.
30.Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker! Don't let ego and greed inhibit clear thinking and hard work.
31.One cannot do anything about yesterday. When one door closes,
another door opens. The greater opportunity always lies through the
open door. (a new train leaves the station every minute)
32.The deepest secret for the trader is to subordinate his will to the will of the market. The market is truth as it reflects all forces that bear upon it. As long as he recognizes this he is safe. When he ignores this, he is lost and doomed.
33.It's much easier to put on a trade than to take it off.
34.If a market doesn't do what you think it should do, get out.
35.Beware of large positions that can control your emotions. Don't be
overly aggressive with the market. Treat it gently by allowing your
equity to grow steadily rather than in bursts. (wise words but,boring)
36.Never add to a losing position.
37.Beware of trying to pick tops or bottoms.
38.You must believe in yourself and your judgement if you expect to
make a living at this game.
39.In a narrow market there is no sense in trying to anticipate what
the next big movement is going to be - up or down.
40.A loss never bothers me after I take it. I forget it overnight. But being wrong and not taking the loss - that is what does the damage
to the pocket book and to the soul.
41.Never volunteer advice and never brag of your winnings.(LOL, debookmark all threads)
42.Of all speculative blunders, there are few greater than selling what shows a profit and keeping what shows a loss.
43.Standing aside is a position.
44.It is better to be more interested in the market's reaction to new information than in the piece of news itself.
45.If you don't know who you are, the markets are an expensive place
to find out.
46.In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word - Nobody! Thus the successful trader does not base moves on what supposedly will happen but reacts instead to what
does happen.
47.Except in unusual circumstances, get in the habit of taking your profit too soon. Don't torment yourself if a trade continues winning without you. Chances are it won't continue long. If it does, console yourself by thinking of all the times when liquidating early reserved gains that you would have otherwise lost.
48.When the ship starts to sink, don't pray - jump!
49.Lose your opinion - not your money.
50.Assimilate into your very bones a set of trading rules that works for you. |
