There are a lot of trading rules that have been espoused through the ages. Some are worthwhile but most are just not that useful. I came across Dennis Gartman's "not-so-simple" trading rules and found them incredibly sage.
Rule #1: Never, ever, under any circumstance, should one add to a losing position...not EVER!
Rule #2: Never, ever, under any circumstance, should one add to a losing position...not EVER!
Rule #3: Learn to trade like a mercenary guerrilla.
Rule #4:Capital is in two varieties: Mental and Real, and, of the two, the mental capital is the most important.
Rule #5: The objective of what we are after is not to buy low and to sell high, but to buy high and to sell higher, or to sell short low and to buy lower.
Rule #6: Sell markets that show the greatest weakness; buy markets that show the greatest strength.
Rule #7: In a bull market we can only be long or neutral; in a bear market we can only be bearish or neutral.
Rule #8: "Markets can remain illogical far longer than you or I can remain solvent."
Rule #9: Trading runs in cycle; some are good, some are bad, and there is nothing we can do about that other than accept it and act accordingly.
Rule #10: To trade/invest successfully, think like a fundamentalist; trade like a technician.
Rule #11: Keep your technical systems simple.
Rule #12: In trading/investing, an understanding of mass psychology is often more important than an understanding of economics.
Rule #13: Do more of that which is working and do less of that which is not.
I know there have been tweaks to these Rules since this particular list was published but if you can master the Rules here you will be a much better trader.
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