Sunday, October 5, 2008

What are the trading rules you have posted on your computer?


> Be patient—wait for the opportunity.
>» 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.
*• Anticipate, don't react.
>• Listen to the market, not outside opinions.
*• Think trades through, including profit/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.
> Look past tomorrow; develop a six-month and one-year outlook.
> Prices move before fundamentals.
*• It is a warning flag if the market is not responding to data correctly.
* Be totally flexible; be able to admit when you are 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
strength.
*• Get rid of all distractions.
^ Remain confident — the opportunities never stop.

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