10 Trading Rules That Can MakeYou Rich
By following the rules below, you will have a much better
chance of keeping your owntrading style simple, and thus stand a greater chance of long term success.
Rule #1:
Always keep a good part ofyour capital in a cash reserve.
Never invest all your funds.
Rule #2:
Learn how to take your lossesquickly and cleanly. Don't
expect to be right all thetime. If you have made a mistake,
cut your losses as quickly aspossible.
Rule #3:
Have realistic expectations.When expectations are too high,
it results in overtradingunderfinanced positions, and very
high levels of greed and fear,making objective decision- makingimpossible.
Rule #4:
Keep it simple and consistent.Most traders follow too many
indicators and listen to somany different opinions that they
are overwhelmed into action.Few people realize that many of the greatest traders of all time never rely onmore than two
or three core indicators andnever listen to the opinions of
others.
Rule #5: When in doubt about what to do in the market, donothing.
Rule #6:
Don't guess when the market istop. Let the market prove it
is top. Don't guess when themarket is bottom. Let the market
prove it is bottom. Byfollowing definite rules, you can do
this.
Rule #7:
Never get out of the marketjust because you have lost
patience or get into themarket because you are anxious from
waiting.
Rule #8: Avoid increasing your trading after a long periodof success
or a period of profitabletrades.
Rule #9: Avoid taking small profits and big losses.
Rule #10:
Never let a profit run into aloss.
When you decide to make atrade be sure that you are not
violating any of these 10rules which are vital and important
to your success. When youclose a trade with a loss, go over
these rules and see which ruleyou have violated; then do not
make the same mistake thesecond time.
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