Trade in the direction of the intermediate trend.
In uptrends, buy the dips; in downtrends, sell bounces.
Let profits run, cut losses short.
Always use protective stops to limit losses.
Don't trade impulsively; have a plan.
Plan your work and work your plan.
Use money management principles.
Diversify, but don't overdo it.
Employ at least a 3 to 1 reward-to-risk ratio.
When pyramiding (adding positions), follow these guidelines,
Each successive layer should be smaller than before
Add only to winning positions.
Never add to a losing position.
Adjust protective stops to the breakeven point.
To prevent margin calls, make sure total equity is at least 75% of total margin requirements.
Close out losing positions before the winning ones.
Except for very short-term trading, make decisions away from the market, preferably when the markets are closed.
Work from the long term to the short term.
Use intra-day charts to fine-tune entry and exit points.
Master inter-day trading before trying intra-day trading.
Try to ignore conventional wisdom; don't take anything said in the printed media too seriously.
Learn to be comfortable being in the minority. If you are right on the market, most people will disagree with you.
Technical analysis is a skill that improves with experience and study. Always be a student and keep learning.
Keep it simple; more complicated isn't always better.
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