What are your top 5 trading rules???

[gamefisherman]

We are 7 months into trading and are looking to learn as much as possible.....

We would really appreciate in discovering other traders 5 top trading rules..........

Our goals are to buy and hold for a short time.....day/s-weeks,month if it looks like hitting the skye....We wish .......one day lol

Would greatly appreciate hearing from you

Best wishes

 

[Nick Radge]

1. Trade in the direction of the trend
2. Cut your losses
3. Let your profits run
4. Decide your pain tolerance level, halve it and trade small enough that you never hit it
5. Patience and tenacity.

 

[So_Cynical]

I don't really consider myself a trader...more a buy and build, short term to long term punter.

1. Timing is everything
2. Believe in your self (Back your decisions)
3. Give trades time to come good (assuming u got the stock selection right)
4. Don't be afraid to average down (assuming u got the stock selection right)
5. U wont always get the timing right or selection Oh and trade your plan.

 

[tech/a]

In addition.

Understand Risk.
Fixed fractional Position sizing.
Understand that you'll only make $$s if you have far more winning trades than losing trades.
OR
Your winning Trades are Much larger than your losing trades.
Understand Reward to Risk.

Learn how to test your trading Idea and dont trade until you know the characteristics and "Blue print of your trading method"

If you dont know the above then chances are your guessing (Gambling).

 

[tech/a]

Thats very dangerous advice.

 

[mlross75]

I only have one rule and that is that i dont take any advice and i dont give any advice , i do what i want when i want.

 

[ColB]

I only have one rule and that is that i dont take any advice and i dont give any advice , i do what i want when i want.

Thanks for sharing that ML! Sounds like a well structured plan! Sort of reminds me of what I was like as a know all youngster until I grew up.

 

[mlross75]

its probably why im not a very good trader.

 

[Nick Radge]

1. Timing is everything
2. Believe in your self (Back your decisions)
3. Give trades time to come good (assuming u got the stock selection right)
4. Don't be afraid to average down (assuming u got the stock selection right)
5. U wont always get the timing right or selection Oh and trade your plan.

If timing is everything, why would we need to give trades time to come good? (#3)
If timing is everything, why would you need to average down? (#4)
If timing is everything, why wouldn't we get timing right all of the time? (#5)

Of course there is a simpler answer......

 

[So_Cynical]

Nick and tech...thanks for the giggles u trendy's are so predictable.

Trend following and all its rules are great for the people that it suits...that's not me.

I have a 100% winning ratio since October (only about 10 trades)..im punting with all of my bank, all of the time and doing really well, though not spectacularly well cos im selling way to early.

I have learned alot from u guys....thanks.

 

[nunthewiser]

I have learned alot from u guys....thanks.

what did you learn?

 

[wayneL]

From another thread:

...maths is not my strong point.

 

[springhill]

Never buy on 'hot tip' from a mate, or from someone who's mates uncle's sister's nephew is the director's son's cousin's dog. If you've heard it second hand, its probably really 15th hand and guess what? You're the smallest fish in the pond

 

[So_Cynical]

what did you learn?

One thing i learned is that there are systematic plans for share trading that can can and do achieve good results...also understand the argument for not averaging and not believing in anything...and its a sound argument.

Also know that i have averaged down very successfully....and have seen my trades turn around when given time and exited in profit, in fact im able to trade now because i averaged down into my LGL position last spring, and turned a big loser (45%) into a nice little winner (about 14% from memory)

Also learned that Trendy's are very predictable....and i think trend following suits certain disciplined personality's better than others.

 

[skyQuake]

One thing i learned is that there are systematic plans for share trading that can can and do achieve good results...also understand the argument for not averaging and not believing in anything...and its a sound argument.

Also know that i have averaged down very successfully....and have seen my trades turn around when given time and exited in profit, in fact im able to trade now because i averaged down into my LGL position last spring, and turned a big loser (45%) into a nice little winner (about 14% from memory)

Also learned that Trendy's are very predictable....and i think trend following suits certain disciplined personality's better than others.

Sure that's a good example? You could have bought into BNB and averaged or the myriad of other underperformers so far.

 

[Timmy]

Wear sunscreen
DYOR
Laugh
Back yourself
Use a stop

 

[>Apocalypto<]

Also know that i have averaged down very successfully....and have seen my trades turn around when given time and exited in profit, in fact im able to trade now because i averaged down into my LGL position last spring, and turned a big loser (45%) into a nice little winner (about 14% from memory)

based on these rules,

how did u fair in the sell off averaged down all the way????

the only thing that saved your 45% loss was this rally. luck saved u not your averaging.

I knew a guy who tried that with CFD's worked great till the real selling came in.

Yeh, you guessed it he anit trading no more.

 

[Pallen]

1. When people get greedy get fearful, when people get fearful get greedy

2. Never invest in anything I dont fully understand.

3. Look for stocks that are one of a kind ( Buffet style play )

4. Always check cashburn and cash position.

5. Set exits and show disciple, keep emotion out of it.

 

[wayneL]

We are 7 months into trading and are looking to learn as much as possible.....

We would really appreciate in discovering other traders 5 top trading rules..........

Our goals are to buy and hold for a short time.....day/s-weeks,month if it looks like hitting the skye....We wish .......one day lol

Would greatly appreciate hearing from you

Best wishes

Perhaps OP might like to enlighten us what sort of trader he is... Technical? Fundamental? Mental?

Then some of these rules could be tailored to be relevant.

 

[So_Cynical]

Sure that's a good example? You could have bought into BNB and averaged or the myriad of other underperformers so far.

And to be 100% honest i looked at BNB and Allco etc (at the time)....and just couldn't do it, sure they had falling charts etc...but the fundamentals were just so negative, and that's what kept me out.

For what ever reason ive avoided the disasters and find myself in profit...with cash, and going forward into this peaking market....have to say that my typical buy targets seen to have evaporated into this rally...so find myself a bit directionless.