General Trading Rules

• Divide your trading capital into ten equal risk segments
• Use a two-step order process
• Don't overtrade
• Never let a profit turn into a loss
• Trade with the trend
• If you don't know what's going on, don't do anything
• Tips don't make you any money
• Use the right order to get into the markets
• Don't be whimsical about closing out your trades
• Withdraw a portion of your profits
• Don't buy a stock only to obtain a dividend
• Don't average your losses
• Take big profits and small losses
• Go for the long pull as an outside speculator
• Sell shorts as often as you go long
• Don't buy something because it is low priced
• Pyramid correctly, if at all
• Decrease your trading after a series of successes
• Don't formulate new opinions during market hours
• Don't follow the crowd - they are usually wrong
• Don't watch or trade too many markets at once
• Buy the rumor, sell the fact
• Take windfall profits when you get them
• Keep charts current
• Preserve your capital
• Nothing new ever occurs in the markets
• Money cannot be made every day from the markets
• Back your opinions with cash when they are confirmed by market action
• Markets are never wrong, opinions often are
• A good trade is profitable right from the start
• As long as a market is acting right, don't rush to take profits
• Never permit speculative ventures to turn into investments
• Don't try to predetermine your profits
• Never buy a stock because it has a big decline from its previous high, nor sell a stock because it is high priced
• Become a buyer as soon as a stock makes new highs after a normal reaction
• The human side of every person is the greatest enemy to successful trading
• Ban wishful thinking in the markets
• Big movements take time to develop
• Don't be too curious about the reasons behind the moves
• Look for reasonable profits
• If you can't make money trading the leading issues, you aren't going to make it trading the overall markets
• Leaders of today may not be the leaders of tomorrow
• Trade the active stocks and futures
• Avoid discretionary accounts and partnership trading accounts
• Bear markets have no supports and bull markets have no resistance
• The smarter you are, the longer it takes
• It is harder to get out of a trade than to get into one
• Don't talk about what you're doing in the markets
• When time is up, markets must reverse
• Control what you can, manage what you cannot