Trading Rules

Small losses
Avoid big losses at all cost. The higher your percentage loss, the higher the percentage gain you need to get your money back. With a 50% loss you need a 100% gain to break even.

Control risk
Know your exit criteria before you enter a trade. As soon as the reason for your entry is not valid anymore exit the trade.

Liquid stocks
Liquid stocks are easier to exit. As a matter of fact technical analysis is more reliable with highly liquid stocks. Lots of volume makes it more difficult to manipulate stocks.

Trade strong stocks
A strong stock has no overhead resistance and is trading near its 52 week high.

Just the charts
Never call a company for more details. Their job is to run a business. Trading for a living requires different skills. Everything you need to know is right there in front of you. If you can’t see it – it probably isn’t there.

The stock needs to display some kind of basing pattern or consolidation pattern. Buy the stock near its initial breakout. Don’t chase stocks.

Market analysis
You need to know what kind of stage your stock is in. Stan Weinstein explains the different stages in his book. Trade in the direction of the primary trend.

Stay disciplined. Keep emotions in check. Emotionally detached traders yield better results.


Jesse Livermore:

Bull Market – Trading Rules


Bear Market – Trading Rules


Linda Bradford Raschke:

50 Time Tested Classic Stock Trading Rules


Dennis Gartman:

Dennis Gartman’s Trading Rules

Video explaining some of his trading rules
Another video explaining his trading rules


Dickson G. Watts:

A Speculator’s Essential Qualities


Tyler Bollhorn:

30 Trading rules
Trading Advice
How To Correct Common Trading Mistakes


Ari Kiev:

The 10 Cardinal Rules of Trading