TRADING RULES

• KEEP A POSITIVE ATTITUDE, NO MATTER HOW MUCH YOU LOSE.

• DON’T TAKE THE MARKET HOME.

• SUCCESSFUL TRADERS ISOLATE THEMSELVES FROM THE OPINIONS OF OTHERS.

• CONTINUALLY STRIVE FOR PATIENCE, PERSISTENT, DETERMINATION, AND RATIONAL ACTION.

• LIMIT YOUR LOSSES------USE STOPS.

• NEVER CANCEL A STOP LOSS ORDER AFTER YOU HAVE PLACED IT.

• AVOID GETTING IN OR OUT OF THE MARKET TOO OFTEN.

• LOSSES MAKE THE TRADER STUDIOUS—NOT THE PROFITS. TAKE ADVANTAGE OF EVERY LOSS TO IMPROVE YOUR KNOWLEDGE OF MARKET ACTION.

• THE MOST DIFFICULT TASK IN SPECULATION IS NOT PREDICTION BUT SELF CONTROL. SUCCESSFUL TRADING IS DIFFICULT AND FRUSTRATING. YOU ARE THE MOST IMPORTANT ELEMENT IN THE EQUATION FOR SUCCESS.

• ALWAYS DISCIPLINE YOURSELF BY FOLLOWING A PRE-DETERMINED SET OF RULES.

• YOU MUST HAVE PROGRAM, YOU MUST KNOW YOUR PROGRAM, AND YOU MUST FOLLOW YOUR PROGRAM.

• THE KEY TO SUCCESSFUL TRADING IS KNOWING YOURSELF AND YOUR STRESS POINT.

• SPEECH MAY BE SILVER BUT SILENCE IS GOLDEN. TRADERS WITH THE GOLDEN TOUCH DO NOT TALK ABOUT THEIR SUCCESS.

• ACCEPT FAILURE AS A STEP TOWARDS VICTORY.

• DREAM BIG DREAMS AND THINK TALL. VERY FEW PEOPLE SET GOALS TOO HIGH. A MAN BECOMES WHAT HE THINKS ABOUT ALL DAY LONG.

• HAVE U TAKEN LOSS? FORGET IT QUICKLY. HAVE YOU TAKEN A PROFIT? FORGET IT EVEN QUICKLY! DON’T LET EGO AND GREED INHIBIT CLEAR THINKING AND HARD WORK.

• ONE CANNOT DO ANYTHING ABOUT YESTERDAY.

• WHEN ONE DOOR CLOSES, ANOTHER DOOR OPENS. THE GREATER OPPORTUNITY ALWAYS LIES THROUGH THE OPEN DOOR. THE DEEPEST SECRET FOR THE TRADER IS TO SUBORDINATE HIS WILL TO THE WILL OF THE MARKET. THE MARKET IS TRUTH AS IT REFLECTS ALL FORCES THAT BEAR UPON IT. AS LONG AS HE RECOGNIZES THIS HE IS SAFE. WHEN HE IGNORES THIS, HE IS LOST AND DOOMED.

• IT’S MUCH EASIER TO PUT ON A TRADE THAN TO TAKE IT OFF.

• IF A MARKET DOESN’T DO WHAT YOU THINK IT SHOULD DO, GET OUT.

• BEWARE OF LARGE POSITIONS THAT CAN CONTROL YOUR EMOTIONS. DON’T BE OVERLY AGGRESSIVE WITH THE MARKET. TREAT IT GENTLY BY ALLOWING YOUR EQUITY TO GROW STEADILY RATHER THAN IT BURST.

• NEVER ADD TO A LOSING POSITION.

• BEWARE OF TRYING TO PICK TOPS OR BOTTOMS.

• YOU MUST BELIEVE IN YOURSELF AND YOUR JUDGMENT IF YOU EXPECT TO MAKE A LIVING AT THIS GAME.

• IT IS BETTER TO BE MORE INTERESTED IN THE MARKET’S REACTION TO NEW INFORMATION THAN IN THE PIECE OF NEWS ITSELF.

• IF YOU DON’T KNOW WHO YOU ARE? THE MARKETS ARE AN EXPENSIVE PLACES TO FIND OUT.

• WHEN THE SHIP STARTS TO SINK, DON’T PRAY -------JUMP!

• LOSE YOUR OPINION---NOT YOUR MONEY.

• ASSIMILATE INTO YOUR VERY BONES A SET OF TRADING RULES THAT WORKS FOR YOU.