List of Trading Rules!

Quote from icarus618:

Rule Number 1: Never lose money.

Rule Number 2: Never forget Rule Number 1.

--Some old walrus from Omaha.


Better Rule Number 1: Make money.

Better Rule Number 2: Do it with a smile. :)
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HA HA

nice... :D
 
from the old fraction days to keep greed in check:

the last tinnie and eighth are the MOST expensive ones

when the tray with the cookies gets passed around.. grab some, it may not come around second time.
 
Quote from elindydotcom:

Taken from www.hardrightedge.com:

Link to full article: http://www.hardrightedge.com/wheel/tcrules1.htm

1. Forget the news, remember the chart. You're not smart enough to know how news will affect price. The chart already knows the news is coming.
You're not smart enough to interpret news but you're smart enough to make millions trading. Sure.

2. Buy the first pullback from a new high. Sell the first pullback from a new low. There's always a crowd that missed the first boat.
3. Buy at support, sell at resistance. Everyone sees the same thing and they're all just waiting to jump in the pool.
So in other words support is the first pullback?

4. Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.
i.e. Don't trade with the trend.

5. Don't buy up into a major moving average or sell down into one. See #3.
I'll agree, but you best use MA's as pivots!

7. Exhaustion gaps get filled. Breakaway and continuation gaps don't. The old traders' wisdom is a lie. Trade in the direction of gap support whenever you can.
They're only "exhaustion" if they fill and "breakaway" if they don't fill. A classic second guess.

6. Don't chase momentum if you can't find the exit. Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble.
8. Trends test the point of last support/resistance. Enter here even if it hurts.
9. Trade with the TICK not against it. Don't be a hero. Go with the money flow.
So buy strength but assume you're in big trouble doing it.

10. If you have to look, it isn't there. Forget your college degree and trust your instincts.
Trust your instincts even though you're not smart enough to react to news.

11. Sell the second high, buy the second low. After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.
In my view, if you sell a previous high, assume it's not going to hold, and if you buy a previous high assume it's going to make a double top.

12. The trend is your friend in the last hour. As volume cranks up at 3:00pm don't expect anyone to change the channel.
By and large good advice.

13. Avoid the open. They see YOU coming sucker
Actually in the last hour is when you get suckered. Traders set up on the open, speculators on the close!

14. 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two lower highs and a double bottom.
I'll have Nitro use some pattern recognition software to backtest that one!
15. Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.
Generally true.
16. Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again.
See channelingstocks.com

17. Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.
Yep. Never seen a high volume spike high in my life

18. Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.
Still trying to cover those shorts from March 12th.

19. Bottoms take longer to form than tops. Fear acts more quickly than greed and causes stocks to drop from their own weight.
An under invested group of portfolio managers in a bull can be as fearful as a bunch of over extended longs in a bear.

20. Beat the crowd in and out the door. You have to take their money before they take yours, period.
The only rule you need.
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Don't let a profit go to a loss.

Don't carry a loser overnight.

Let your winners run and cut your losers short, but don't be afraid to ring the cash register either. Ka-chingo baby!!!
 
My KISS rules for any expert approach.

A. Trade the slowest chart possible to pick off all trends including lateral swing moves. (5 min to 30 min intraday.)
B. Wait until the market settles down at open(15min max)
C. Always go in on the first bar that breaks out beyond prior bar after B occurs.
D. Stay on the right side of the trend. Only reverse when the trend fails to continue. (Use trend lines and get break out of trendline)
E. When trend doesn't build after reversal, continue quick reversals to stay on right side of chop or whippy market. (Use lateral trend lines to show the high and low of chop)
F. When consolidation of E ends with centering of latral trend, exit and reenter on break out of the pennant and go to D.
G. Use MOC.


For example:

Today, I did chop until 10:10 (S,L,S,L,S) and stayed in S (1020.3 reverse) till 12:00; L till 13:20; S till 16:00; L till MOC.


Good Luck.
 
I really only have comments on some of these rules.


Quote from elindydotcom:

Taken from www.hardrightedge.com:

Link to full article: http://www.hardrightedge.com/wheel/tcrules1.htm

1. Forget the news, remember the chart. You're not smart enough to know how news will affect price. The chart already knows the news is coming.

A move on news is a serious move. One should be smart enough to interperet how much of a move due to the nature of the news.
Also, ever see a flatlined stock take a nosedive? Those are the best plays.


12. The trend is your friend in the last hour. As volume cranks up at 3:00pm don't expect anyone to change the channel.

Toward 4PM you get crazy buyers and sellers coming in left and right. Stops going off, last minute orders, etc...It's near impossible to tell the direction for most of the stocks.

13. Avoid the open. They see YOU coming sucker

9:30-10:30 is some of the best times for stocks to make moves on little volume. 40-50 cent moves everyday. Unlike the close, not everyone is up.

18. Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.

Yeah like unexpected news or a big time fund dumping or acquiring shares.

20. Beat the crowd in and out the door. You have to take their money before they take yours, period.

On the money
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Only rule I wanna add is for those idiots messing up trades.

Stop screwing it up and start trading.
 
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