Tuesday, June 9, 2009

Stock Market Rules: Nineteen Trading Rules For Greater Profits

Stock Market Psychological Management
1. When in doubt, stay out
2. Never trade or invest based on hope
3. Act on you own judgment or else absolutely and entirely on the judgment of another
4. Buy low (into weakness), sell high (into strength)
5. Don’t overtrade
6. After a successful and profitable campaign, take a trading vacation
7. Take a periodic mental inventory to see how are doing
8. Constantly analyze your mistakes
9. Don’t jump the gun
10. Don’t try to call every market turn

Stock Market Money Management
11. Never enter into a position without first establishing a risk reward
12. Cut losses, let the profit run
13. Place numerous small bets on low-risk ideas
14. Look down, not up
15. Never trade or invest more than you can reasonably afford to lose
16. Don’t fight the trend
17. Wherever possible, trade liquid markets
18. Never meet a margin call
19. If you are going to place a stop, put it at a logical, not convenient, place

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