15 Trading Rules

1.  Don’t be a tradeaholic

  • Someone who has to have a trade on at all times or they feel their missing out

2.  You trade to make money – not for fun, games, or to escape boredom

3.  Never add to a bad trade

  • This may work occasionally, but will hurt you in the long run

4.  Once you have a profit on a trade, never let it turn into a loss

5.   No hoping, no wishing, no would’ve, no opinions, no should’ve

 6.   Don’t be a one way trader – be flexible, opportunities on both sides

7.   Know your risk on each trade. Trade with stops to limit losses

  • Sell down to the sleeping point (My favourite since 15 yrs )

8.   Look for 3-1 profit objective trade

9.  When initiating a trade, always get your price (use a limit order)

10.  When liquidating a bad trade, always use a market order

11.  Have a plan. Trade it. Monitor it.

12.  Make 10 points on a million trades, not a million points on one trade

  • Aim for consistency (it adds to your batting average)
  • There are more opportunities to make many reasonable trades

13.  Learn from your own mistakes

14.  Pay attention to weekly lows and highs

15.  Technicals and fundamentals are equally important.

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