Trading Rules that Work

Getting in the Game

RULE #1 Know Your Game 

RULE #2 Have a Trading Plan 

RULE #3 Think in Terms of Probabilities 

RULE #4 Know Your Time Frame 

Cutting Losses

RULE #5 Define Your Risk 

RULE #6 Always Place a Protective Stop 

RULE #7 Your First Loss Is Your Best Loss 

RULE #8 Never Add to a Loser 

RULE #9 Don’t Overtrade 

Letting Profits Run

RULE #10 Keep Good Records and Review Them 

RULE #11 Add to Your Winners 

RULE #12 Use Multiple Time Frames 

RULE #13 Know Your Profit Objective 

RULE #14 Don’t Second-Guess Your Winners 

Trader Maxims

RULE #15 Know the Limits of Your Analysis 

RULE #16 Trade with the Trend 

RULE #17 Use Effective Money Management 

RULE #18 Know Your Ratios 

RULE #19 Know When to Take a Break 

RULE #20 Don’t Trade the News 

RULE #21 Don’t Take Tips 

RULE #22 Withdraw Equity Regularly 

RULE #23 Be a Contrarian 

RULE #24 All Markets Are Bearish

RULE #25 Buy/Sell 50% Retracements 

RULE #26 The Only Indicator You Need 

RULE #27 Study Winning Traders 

RULE #28 Be a Student of Yourself