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THE RULES OF TRADING
1 . The expression 'Bull/Bear market' are statements describing the past, always position according to your OWN daily views.
2 . Be prepared to add to losing trades. Remember buying more at lower prices improves your average entry level and increases your chance of taking a turn.
3. Never, Ever, add to winning trades as this will adversely affect your average entry price and increase your chances of loss.
4. Stops are for people who get the market wrong, and such stops are often hunted out by other market players...be flexible......a moving target is hard to hit.
5. Markets are about being 'right'. After a position is established, stick with it....belief in the 'rightness' of a trade is the summary of your efforts and contrary price action is usually caused by other 'bad' traders spoiling it for the 'good guys'.
6. When trading well, trade in smaller size, your luck will soon run out.. go down the pub..treat yourself, you deserve it.
7. When trading badly, trade in bigger size, your luck will change soon... go down the pub, treat yourself, you deserve it.
8. When a market moves quickly and substantially in one direction, fight it....markets that move 'too far, too fast' come back in the end.
9. If you notice that a market is all over the media, you're on a winner, it's also likely that you're doing too much research...but, relax and stick with it.
10. If the fundamentals and technicals of a trade point in different directions, trade according to your strongest beliefs.
11. When central banks are intervening..use them as a backstop...one man fighting a tank with a rifle is not going to win...remember you are at the centre of this market.
12. Always be aware that the market is out to get you, this is a personal game, remember that brokers are thieves in suits, clients are your enemy and that locals always know your stops.
13. A market that fails to respond positively to good news is clearly mistaken, buy some more.
14. Build complex strategies and cross books...the more bets you have on, the more likely one of them is to be a 'banker'
15. Markets approaching big 'round' numbers present excellent opportunities for selling naked volatility at the strike.
16. Avoid having a fixed plan, trade according to your emotions, markets change and so should you.
17. Stops are for people who get the market wrong.
17 Be patient, the market will turn around if you give it time.
18. Be impatient, no one ever went broke taking a profit.
19. Remember, the harder you work at a market, the more you will know, and the greater its debt to you.
20. If in doubt about executing a trade..do a 'little bit' to see 'how it feels'
21. Take profits quickly and move on, always 'leave some for the next man'
22. Take big positions when feeling positive and lucky, especially after a losing streak.
23. Information from brokers as to who is buying and selling is vital if someone else is going to pick up the bar bill.
24 Buy low, sell high.
25. Equity markets are different, they have an inbuilt upward bias as economies are continually trending to expansion and inflation, position accordingly.
26. Never break the rules
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