Bullish vs. Bearish

Trading Rules

Posted on May 3rd, 2008 by bear.
Categories: Technical analysis.

I just read some technical analysis materials and I’ve decided to share their “wisdom” with you. What I’ll realy try to do is to summarize some trading rules that I found very interesting in order to improve one’s portfolio management.

1. Cut your losses;
2. Let your profits run;
3. Never average you losses;
4. Wait for a clearly defined situation;
5. Never try to compensate a loss;
6. Stick to your own style and strategy;
7. Avoid emotions and analyze everything;
8. Never trade on figures - market discounted them already;
9. Don’t be a hero - always question yourself and your abilities;
10. Be flexible - expect the unexpected;
11. Use intelligent stops and lock in a profit as the trend continues;
12. Look for trading opportunities which are not too much observed;
13. Never bet everything on one trade.

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