- Don’t enter a trade if you are unsure of the trend. Never buck the trend.
- When in doubt, get out, and don’t get it when in doubt.
- Only trade active markets.
- Distribute your risk equally among different markets.
- Never limit your orders. Trade at the market.
- Don’t close trades without a good reason.
- Extra monies from successful trades should be placed in a separate account.
- Never trade to scalp a profit.
- Never average a loss.
- Never get out of the market because you have lost patience or get in because you are anxious from waiting.
- Avoid taking small profits and large losses.
- Never cancel or stop a loss after you have placed the trade.
- Avoid getting in and out of the market too often.
- Be willing to make money both sides of the market.
- Never buy or sell just because the price is low or high.
- Pyramiding should be accomplished once it has crossed resistance levels and broken zones of distribution.
- Pyramid issues that have a strong trend.
- Never hedge a losing position.
- Never change your position without a good reason.
- Avoid trading after long periods of success or failure.
- Don’t try to guess tops or bottoms.
- Don’t follow a blind man’s advice.
- Reduce trading after the first loss; never increase.
- Avoid in getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.
