40 Trading Rules For Success In Trading Stocks
1. Keep records of your
trading results.
2. Keep a positive
attitude, no matter how much you lose.
3. Don’t take the market
home.
4. Continually set higher
trading goals.
5. Successful traders buy
into bad news and sell into good news.
6. Successful traders are not afraid to buy high and sell low.
7. Successful traders have
a well-scheduled planned time for studying the markets.
8. Successful traders
isolate themselves from the opinions of others.
9. Continually strive for
patience, perseverance, determination, and rational action.
10. Never cancel a stop
loss order after you have placed it!
11. Place the stop at the
time you make your trade.
12. Never get into the
market because you are anxious because of waiting.
13. Avoid getting in or out
of the market too often.
14. Losses make the trader
studious – not profits. Take advantage of every loss to improve your knowledge
of market action.
15. The most difficult task
in speculation is not prediction but self-control. Successful trading is
difficult and frustrating. You are the most important element in the equation
for success.
16. Always discipline
yourself by following a pre-determined set of rules.
17. Remember that a bear
market will give back in one month what a bull market has taken three months to
build.
18. Don’t ever allow a big
winning trade to turn into a loser. Stop yourself out if the market moves
against you 20% from your peak profit point..
19. You must have a
program, you must know your program, and you must follow your program.
20. Expect and accept
losses gracefully. Those who brood over losses always miss the next
opportunity, which more than likely will
be profitable.
21. Split your profits
right down the middle and never risk more than 50% of them again in the market
22. The key to successful
trading is knowing yourself and your stress point.
23. The difference between
winners and losers isn’t so much native ability as it is discipline exercised
in avoiding mistakes.
24. In trading as in
fencing there are the quick and the dead.
25. Speech may be silver
but silence is golden. Traders with the golden touch do not talk about their
success.
26. Dream big dreams and
think tall. Very few people set goals too high. A man becomes what he thinks
about all day long.
27. Accept failure as a
step towards victory.
28. Have you taken a loss?
Forget it quickly. Have you taken a profit? Forget it even quicker! Don’t let
ego and greed inhibit clear thinking and hard work.
29. One cannot do anything
about yesterday. When one door closes, another door opens. The greater
opportunity always lies through the open door.
30. The deepest secret for
the trader is to subordinate his will to the will of the market. The market is
truth as it reflects all forces that bear upon it. As long as he recognizes
this he is safe. When he ignores this, he is lost and doomed.
31. It’s much easier to put
on a trade than to take it off..
32. If a market doesn't do
what you think it should do, get out.
33. Beware of trying to
pick tops or bottoms.
34. You must believe in
yourself and your judgement if you expect to make a living at this game.
35. In a narrow market
there is no sense in trying to anticipate what the next big movement is going
to be – up or down
36. Never volunteer advice
and never brag of your winnings
37. Of all speculative
blunders, there are few greater than selling what shows a profit and keeping
what shows a loss.
38. Standing aside is a
position
39. It is better to be more
interested in the market’s reaction to new information than in the piece of
news itself.
40. In the world of money,
which is a world shaped by human behavior; nobody has the foggiest notion of
what will happen in the future. Mark that word – Nobody! Thus the successful
trader does not base moves on what supposedly will happen but reacts instead to
what does happen.
