- Do not follow advisory services, newsletters
- Do not blindly accept a broker's advice
- Do not listen to rumors.
- Do not listen to the news about investments and trading.
- Do not listen to hot tips.
- Ignore insiders, they are often absolutely the worst judges of their own stock.
- Ignore Wall Street sayings, no matter how ancient or revered.
- Trade only in highly liquid instruments.
- Make all decisions and plans before the market opens.
- Do not change decisions and plans after the market opens.
- Make plans for all contigencies, good and bad, pre-market.
- Pyramid up longs, pyramid down shorts, if trade proves right.
- Cut losses quickly. If a trade goes against me, get out.
- For more than 200 shares, get in, in stages, as the trend proves out.
- Let profits ride if there is no good reason to close out the position.
- Set a price stop and a time stop.
- Transfer half of winnings to cash, out of trading accounts, periodically.
- Never overtrade.
- Never completely and at once reverse a position.
- Run quickly or not at all at the first approach of danger.
- When doubtful, reduce the size of the trade.
- It is better to average up than to average down.
- Public opinion is not to be ignored.
- Quiet weak markets are good markets to sell.
- In forming opinions, the element of chance should be included.
Darvis, Nicolas – “How I Made $2,000,000 in the Stock Market” 1986
Livermore, Jesse – “How to Trade in Stocks” orig. publ. ~60+ years ago
Wyckoff, Richard – “Stock Market Technique Number 2” 1934