1:“If you get in on Jones’ tip; get
out on Jones’ tip”. If you are riding another person’s
idea, ride it all the way.
2:Run early or not at all. Don't be an eleven o'clock bull
or a five o'clock bear.
3:Woodrow Wilson said, "a governments first priority is
to organize the common interest against special interests".
Successful traders seek out market opportunities capitalizing
on the reality that government's first priority is rarely achieved.
4:People who buy headlines eventually end up selling newspapers.
5:If you do not know who you are, the market is an expensive
place to find out.
6:Never give advice-the smart don't need it and the stupid
don't heed it.
7:Disregard all prognostications. 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 bases no moves on what supposedly
will happen but reacts instead to what does happen.
8:Worry is not a sickness but a sign of health. If you are
not worried, you are not risking enough.
9:Except in unusual circumstances, get in the habit of taking
your profit too soon. Don't torment yourself if a trade continues
winning without you. Chances are it won't continue long. If
it does console yourself by thinking of all the times when liquidating
early preserved gains you would otherwise have lost.
10:When the ship starts to sink, don't pray-jump!
11:Life never happens in a straight line. Any adult knows this.
But we can too easily be hypnotized into forgetting it when
contemplating a chart. Beware of the chartist's illusion.
12:Optimism means expecting the best, but confidence means
knowing how you will handle the worst. Never make a move if
you are merely optimistic.
13:Whatever you do, whether you bet with the herd or against,
think it through independently first.
14:Repeatedly reevaluate your open positions. Keep asking yourself:
would I put my money into this if it were presented to me for
the first time today? Is this trade progressing toward the ending
position I envisioned?
15:It is a safe bet that the money lost by (short term) speculation
is small compared with the gigantic sums lost by those who let
their investments "ride". Long term investors are
the biggest gamblers as after they make a trade they often times
stay with it and end up losing it all. The intelligent trader
will . By acting promptly-hold losses to a minimum.
16:As a rule of thumb good trend lines should touch at least
three previous highs or lows. The more points the line catches,
the better the line.
17:Volume and open interest are as important to the technician
18:The clearest and easiest way to determine a trend is from
previous highs and lows. Higher highs and higher lows mark an
uptrend, lower highs and lower lows mark a downtrend.
19:Don't sell a quiet market after a fall because a low volume
sell-off is actually a very bullish situation.
20:Prices are made in the minds of men, not in the soybean
field: fear and greed can temporarily drive prices far beyond
their so called real value.
21:When the market breaks through a weekly or monthly high,
it is a buy signal. When it breaks through the previous weekly
or monthly low, it is a sell signal.
22:Every sunken ship has a chart.
23:Take a trading break. A break will give you a detached view
of the market and a fresh look at yourself and the way you want
to trade for the next several weeks.
24:Assimilate into your very bones a set of trading rules that
works for you.