正文
1. In bull markets, one is supposed to be long. This may sound obvious, but how many of us have sold the first rally in every bull market – saying that the market has moved too far too fast. Thus, we have not enjoyed the profits that should have accrued to us for our initial bullish outlook, but have actually lost money while being short. Remember, having “no position” is a position.
2. Buy that which is showing strength - sell that which is showing weakness. The public
continues to buy when prices have fallen. The professional buys because prices have rallied. This difference may not sound logical, but buying strength works. The rule of survival is not to "buy low, sell high", but to "buy higher and sell higher".
3. When putting on a trade, enter it as if it has the potential to be the biggest trade of the year. Don't enter a trade until it has been well thought out, a campaign has been devised for adding to the trade, and contingency plans set for exiting the trade.
4. On minor corrections against the major trend, add to trades. In bull markets, add to the trade on minor corrections back into support levels. In bear markets, add on corrections into resistance. Use the 33-50% corrections level of the previous movement or the proper moving average as a first point in which to add.
5. Be patient – the old adage “you never go broke taking a profit” is may the most worthless piece of advice ever given. Taking small profits is the surest way to ultimate loss I can think of, for small profits are not allowed to develop into enormous profits.
6. Be impatient. As always, small loses and quick losses are the best losses. It is not the loss of money that is important. Rather, it is the mental capital that is used up when you sit with a losing trade that is important.
7. Never, ever under any condition – add to a losing trade, or “average” into a position. If you are buying, each new buy price must be higher than the previous price. If you are selling, then each new selling price must be lower. THIS RULE IS TO BE ADHERED TO WITHOUT QUESTION.
8. Do more of what is working for you, and less of what is not. Each day, look at the various positions you are holding, and try to add to the trade that has the most profit, while subtracting from the trade that is either unprofitable, or showing the least profit. This is the basis of “let your profits run.”
9. When adding a trade, add only ¼ to ½ as much as currently held. That is, if you are holding 400 shares, at the next point to add, add no more than 100 or 200 shares. This moves the “average price” of your holdings less than half of the distance moved, thus allowing you to sit through 50% corrections without touching your average price.
10. When sharp losses in equity are experienced, take time off. Close all trades and stop trading for several days. The mind can play games with itself following sharp, quick losses. The urge "to get the money back" is extreme, and should not be given in to.
2. Buy that which is showing strength - sell that which is showing weakness. The public
continues to buy when prices have fallen. The professional buys because prices have rallied. This difference may not sound logical, but buying strength works. The rule of survival is not to "buy low, sell high", but to "buy higher and sell higher".
3. When putting on a trade, enter it as if it has the potential to be the biggest trade of the year. Don't enter a trade until it has been well thought out, a campaign has been devised for adding to the trade, and contingency plans set for exiting the trade.
4. On minor corrections against the major trend, add to trades. In bull markets, add to the trade on minor corrections back into support levels. In bear markets, add on corrections into resistance. Use the 33-50% corrections level of the previous movement or the proper moving average as a first point in which to add.
5. Be patient – the old adage “you never go broke taking a profit” is may the most worthless piece of advice ever given. Taking small profits is the surest way to ultimate loss I can think of, for small profits are not allowed to develop into enormous profits.
6. Be impatient. As always, small loses and quick losses are the best losses. It is not the loss of money that is important. Rather, it is the mental capital that is used up when you sit with a losing trade that is important.
7. Never, ever under any condition – add to a losing trade, or “average” into a position. If you are buying, each new buy price must be higher than the previous price. If you are selling, then each new selling price must be lower. THIS RULE IS TO BE ADHERED TO WITHOUT QUESTION.
8. Do more of what is working for you, and less of what is not. Each day, look at the various positions you are holding, and try to add to the trade that has the most profit, while subtracting from the trade that is either unprofitable, or showing the least profit. This is the basis of “let your profits run.”
9. When adding a trade, add only ¼ to ½ as much as currently held. That is, if you are holding 400 shares, at the next point to add, add no more than 100 or 200 shares. This moves the “average price” of your holdings less than half of the distance moved, thus allowing you to sit through 50% corrections without touching your average price.
10. When sharp losses in equity are experienced, take time off. Close all trades and stop trading for several days. The mind can play games with itself following sharp, quick losses. The urge "to get the money back" is extreme, and should not be given in to.
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