30 Rules for Traders

  • Buying a weak stock is like betting on a slow horse. It is retarded.
  • Stocks are only cheap if they are going higher after you buy them.
  • Never trust a person more than the market. People lie, the market does not.
  • Controlling losers is a must; let your winners run out of control.
  • Simplicity in trading demonstrates wisdom. Complexity is the sign of inexperience.
  • Have loyalty to your family, your dog, your team. Have no loyalty to your stocks.
  • Emotional traders want to give the disciplined their money.
  • Trends have counter trends to shake the weak hands out of the market.
  • The market is usually efficient and can not be beat. Exploit inefficiencies.
  • To beat the market, you must have an edge.
  • Being wrong is a necessary part of trading profitably. Admit when you are wrong.
  • If you do what everyone is doing you will be average, so goes the definition.
  • Information is only valuable if no one knows about it.
  • Lower your risk till you sleep like a baby.
  • There is always a reason why stocks go up or down, we usually only learn the reason when it is too late.
  • Trades that make a lot of intellectual sense are likely to be losers.
  • You do not have to be right more than you are wrong to make money in the market.
  • Don’t worry about the trades that you miss, there will always be another.
  • Fear is more powerful than greed and so down trends are sharper than up trends.
  • Analyze the people, not the stock.
  • Trading is a dictators game; you can not trade by committee.
  • The best traders are the ones who do not care about the money.
  • Do not think you are smarter than the market, you are not.
  • For most traders, profits are short term loans from the market.
  • The stock market can not be predicted, we can only play the probabilities.
  • The farther price is from a linear trend, the more likely it is to correct.
  • Learn from your losses, you paid for them.
  • The market is cruel, it gives the test first and the lesson afterward.
  • Trading is simple but it is not easy.
  • The easiest time to make money is when there is a trend.

 

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