Trading Rules To Live By:

Hey,

Just thought I would start this topic about your trading rules. Every trader should have rules that they (try) to NEVER break.

Feel free to comment on mine, and please add your own...

1) Plan your trade, Trade your plan. Write down your buy price, sell price, stop-loss price, and then do it. Don’t worry about where the prices are going. Worry about what you are going to do once they get there. Plan your trade, and be disciplined enough to follow it.
2) NEVER trade stocks that are below 400,000 volume (30 day average). Stocks under this are too hard to get in and out of.
3) NEVER risk more than 2% of my trading capital on a single trade. Ex: Starting with $5,000, I can risk $100.
4) NEVER long a stock that is below the 200 ma (moving average). And NEVER short a stock that is above the 200 ma.
5) Risk/Reward Ratio is ALWAYS above 1:2
6) NEVER get emotionally attached to a stock.
7) DON’T buy stocks that have recently been falling in price, and are now hitting new lows. Trying to catch a falling knife is dangerous! Let the knife bounce a few times, then pick it up.
Don’t be greedy! When you have a reasonable profit, TAKE IT!
9) Don’t look back! Once you sell a stock, don’t look to see if it sold for higher or lower at a later date. This messes with your mind!
10) Always keep track of your trades!
11) NEVER buy a stock that has a press release in less than 1 week from now.
12) ALWAYS FOLLOW YOUR RULES!!!!

faststock,

Very nice!! It differs a little from my rules, but we have almost all of the same things. I only need volume of 150,000. I will be adding that I wont buy a stock with a press realease coming up! Great example! thanks again.

Faststock...Very nice post! Thanks for sharing your trading rules with us!

Thanks for posting your rules! I will definitely come back to them often as I get more and more into trading. Having a place like this will really help!

it's great to that they were helpful to you ABalcom! But remember that these are my rules. To be a more successful trader, you should create your own set of rules. This way, you will be more likely to follow them.

Hope to hear from you soon.