Trading Rules:

 

RULE 1: TRADE WITH THE TREND "TREND IS YOUR FRIEND".

 

RULE 2: DON'T ENTER AT THE OPENING BELL. WATCH THE TREND AND ENTER.

 

RULE 3: BE PATIENT. DON'T OVERTRADE.

 

RULE 4: LET YOUR PROFIT RUN; CUT YOUR LOSSES.

 

RULE 5: TRADING WITHOUT STOPLOSS IS LIKE DRIVING A CAR WITHOUT BRAKE.

 

RULE 6:NEVER SPECULATE WITH THE MONEY YOU NEED TO LIVE. IF YOU CAN'T AFFORD A POSSIBLE LOSS, STAY OUT OF THE MARKET.

 

RULE 7: ONE WAY TO WIN IN THE MARKET IS TO AVOID DOING WHAT  MOST OTHERS ARE DOING.

 

RULE 8: WHEN OPINION IN WALL STREET ARE TOO UNANIMOUS-BEWARE! THE MARKET IS FAMOUS FOR DOING THE UNEXPECTED.

 

RULE 9: BE PLIABLE AT ALL TIMES, BUT DON'T OVERTRADE. PLAN EACH CAMPAIGN CAREFULLY, AND NEVER BLAME THE TAPE FOR ANY ERROR YOU  MAY MAKE.

 

RULE 10:WHATEVER IS HARD TO DO IN THE MARKET IS GENERALLY THE RIGHT THING; AND WHATEVER IS EASY IS USUALLY THE WRONG THING TO DO.

 

RULE 11:EQUAL DISTRIBUTION OF RISK. TRADE IN 2 OR 3 DIFFERENT COMMODITIES, IF POSSIBLE. AVOID TYING UP ALL YOUR CAPITAL IN ANY ONE COMMODITY.

 

RULE 12:NEVER HEDGE. IF YOU ARE LONG OF ONE COMMODITY AND IT STARTS TO GO DOWN, DO NOT SELL ANOTHER COMMODITY SHORT TO HEDGE IT. GET OUT AT THE MARKET; TAKE YOUR LOSS AND WAIT FOR ANOTHER OPPORTUNITY.

 

RULE 13:WHEN YOU WIN ,DON'T GET RECKLESS; PUT YOUR WINNING IN THE BANK FOR A WHILE.

 

RULE 14:USE YOUR MISTAKE AS OBJECT -LESSON -THE PERSON WHO MAKES THE SAME MISTAKE TWICE DESERVES NO SYMPATHY.

 

RULE 15:KNOW AND FOLLOW THE RULES!