TRADING RULES
DON’T GAMBLE
Be patient – wait for opportunities
Trade on your own ideas and style
Never trade impulsively, especially on other people’s advice
Don’t risk too much on one event or company
Stay focused, especially when the markets are moving
Listen to the market, not outside opinions
Think trades though, including profits/loss exit points, before you put them on
If you are unsure about a position, just get out
Force yourself to trade against the consensus
Trade pattern recognition
Prices move before fundamentals
Admit when you’re wrong
You will be wrong often, recognize winners and losers fast
Start each day from last night’s close, not your original cost
Adding to losers is easy but usually wrong
Force yourself to buy on extreme weakness and sell on extreme high
Short a big gap down
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