Some Useful (maybe) Rules

idribble said:

I've compiles a short list of things I wished I had taken notice of many years ago.


Do everything you can to preserve your capital.

Have a stop and USE IT!

Buy a stock in an uptrend. If you can’t see the trend then it doesn’t exist.

Wise words

Do not diversify.

Diversification is fine if you understand "What" will make you the profit in that which you diversify.I gather you mean within the Market like stocks/options/futures.I agree that being an "Expert" in one is far better than being a "Jack of all trades".
I actually advocate diversification as timing of opportunity isnt an exact science.

Do everything you can to preserve your capital.

Dont trade Should/would or could be's!If its not happening NOW chances are it wont happen AT ALL!! Dont worry about what you MIGHT lose by missing a 2% chance of a 100% rise BUT WHAT YOUR LOSING NOW!!!

Do not take any notice of:
Your broker.
Recommendations in magazines or newspapers (for that matter, any reports at all).
Chairmans reports (other than to confirm the sector they are in).
Tips on chat sites.

Well again you can evaluate them yourself and with "Your OWN" entry criteria stop placement and exit criteria (With these Criteria youll already have an Idea what will give you the best chance to trade with a positive expectancy--Profit.) Ive seen some horrors and some absolute "Gems" on this site!Choice is mine and even if I decided to trade them I know my RISK!

Leave the complex t / a indicators to the publishers of books on t / a to explain how they work. They are the only ones making money out of complex t / a indicators.

Hmm------no just learn that they are "INDICATORS" they INDICATE they dont GUARENTEE anything.They are formulated from PAST PRICE ACTION and can at best INDICATE possible future price action.Most have no idea how to correctly apply technical analysis.The combination of F/A where there are 1000s of experts and T/A where there are very few---can be VERY POWERFUL.Its worth the effort.
Some I agree are certaintly of little value.(Concepts more than individual indicators.)


Do everything you can to preserve your capital.

Yep --Winners Keep their winners---Losers Keep their Losers!!!

Don’t believe any forecast by anyone.

See above

Do not fall in love with a stock.

Thats Going south!! If its heading North and in profit fall in love with it and NEVER be to keen to take profit.

And finally ……………

Do everything you can to preserve your capital.

Actually if your trading most instruments and you lose 50% and you DONT re evaluate what your doing-------a 50% loss sure is an indication what your doing isnt working!! Then you should consider another pursuit!

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