Trading Rules
Buy rising prices and sell falling prices.
Do not trade every day of every year.
Trade only when the market is clearly bullish or bearish.
Trade in the direction of the general market. If it’s rising you should be long, if it’s falling you should be short.
Co-ordinate your trading activity with pivot points.
Only enter a trade after the action of the market confirms your opinion and then enter promptly.
Continue with trades that show you a profit, end trades that show a loss.
End trades when it is clear that the trend you are profiting from is over.
In any sector, trade the leading stock/price - the one showing the strongest trend.
Never average losses by, for example, buying more of a stock/price that has fallen.
Never meet a margin call - get out of the trade.
Go long when stocks/price reach a new high. Sell short when they reach a new low.
At the beginning of the move there should be an unusually large volume of shares traded.
Prices should move generally in one direction (upwards or downwards) for a few days.
A normal reaction should be observed - volume will decrease compared with the volumes observed during the initial trend, and the price may move against the trend somewhat.
Within a day or two of the normal reaction, volume should increase again and the price trend should be resumed.
Other Useful Trading Guidance
Don’t become an involuntary investor by holding onto stocks whose price has fallen.
A stock is never too high to buy and never too low to short.
Markets are never wrong - opinions often are.
The highest profits are made in trades that show a profit right from the start.
No trading rules will deliver a profit 100 percent of the time
