What are your top 5 trading rules???

[tech/a]

I have a 100% winning ratio since October (only about 10 trades)..im punting with all of my bank, all of the time and doing really well, though not spectacularly well cos im selling way to early

Punting with all of your bank all of the time.
So you use fresh air for averaging down?
100% win ratio since Oct with 10 trades and you EXIT TOO EARLY?

Trend following is so predictable---the alternative (which is ?) isnt?
This is preferable?

have to say that my typical buy targets seen to have evaporated into this rally...so find myself a bit directionless.

This would be perfect as you dont follow trends---surely.

 

[explod]

One thing i learned is that there are systematic plans for share trading that can can and do achieve good results...also understand the argument for not averaging and not believing in anything...and its a sound argument.

Also know that i have averaged down very successfully....and have seen my trades turn around when given time and exited in profit, in fact im able to trade now because i averaged down into my LGL position last spring, and turned a big loser (45%) into a nice little winner (about 14% from memory)

Also learned that Trendy's are very predictable....and i think trend following suits certain disciplined personality's better than others.

Agree, takes a bit of nerve sometimes but increasing positions going up has worked very well for me. Momentum and volume has to be watched very close. Picked a bottom once where a trade went dreafully wrong and got out of it but will never do that again.

 

[Mr J]

1. Trade good.

 

[NeuromanceR]

1. Trade good.

2. Buy high, sell higher.

 

[Sean K]

1. Don't trust
2. an
3. internet avatar's
4. top 5
5. trading rules.

Unless they are a tiger.

 

[Mr J]

2. Buy high, sell higher.

Price is taken in context of the timeframe being traded, and therefore a good trade will be always taken at a low price, i.e. buy low, sell high. Anything else is a low probability trade, and therefore bad.

1. Don't trust 2. an 3. internet avatar's 4. top 5 5. trading rules. Unless they are a tiger.

You can trust mine .

 

[Aussiest]

2. Buy high, sell higher.

Why? Give me an example when this has worked.

 

[haunting]

1) buy when you are feeling scared
2) buy more when everyone in this forum is feeling scared
3) put all your money in when the whole market is feeling scared
4) learn to meditate to calm your nerves to survive this fear so you can live to enjoy your reward
5) learn to disengage yourself from the market, ie, concentrate your energy on what others are doing and react accordingly

 

[Sean K]

Some of these are sounding like long term (buy and hold) investment rules as opposed to short/mid term trading rules.

I thought the intent was short term trading.

 

[trainspotter]

1) Give all your money to Trembling Hand
2) see above
3) see rule number 1
4) Refer to rule #1
5) D .. .all of the above.

I am convert to TH's superior knowledge. Just trying to build up the nerve to implement it.

 

[fapturbo]

2. Buy high, sell higher.

Of everything I've read on this post. This is the one that makes the most sense.

Why??

Because you are buying as price is heading up and you are buying in the direction of the prevailing trend.

1. Trade with Momentum
2. Trade with Momentum
3. Trade with Momentum
4. Trade with Momentum
5. Trade with Momentum

Trailing Stop + Fixed Stop for Exits.

 

[motorway]

My take on levy flights--->

Antelopes use a series of random jumps ( levy flight )
To evade the chasing lions
They do not run in a predictable straight line
But by a series of side steps

Lions in turn use a series of random anticipatory pounces
they do not pounce where the antelope is
But where a probability exists where an antelope will be at particular moment

If the lion pounced where the antelope is
the Lion would nearly always catch empty air
tire exhaust and die

By pouncing where the antelope has a probabilty ( levy flight )
of being... Though the lion catches empty air sometimes.
Probability and perseverance mean that the lion will arrive at the same spot the antelope jumps to
enough times that he not only survives but thrives

The connection to trading and markets are obvious
predator and prey
A good example of it moves and we ( or the Lion ) moves first..
( and think the antelope too, that is why the antelopes survive and thrive also)

Of pouncing to the not so superficially obvious
Of being beware of stability
Of limited upside
Knowing what so a small amount of knowing how can make a difference
What a lot of knowing WHAT can make a total difference ( can you predict here . or can you not )

( consider what happen to the lions that did not know what and spend their ( short ) lives trying to work out how ...) etc


And the Lions NEVER EVER PREDICT
They have a System With an Edge
Because they Know WHAT

motorway


Below some rules found on the web

Acting Under Uncertainty - 25 Rules Of Thumb

Beware of obvious rewards and excessive competition - they increase exposure to chance events and reduce the role of skill in acquiring rewards

Watch for hidden correlations

Be suspicious of stability or the appearance of stability - there are higher dimensions of risk lurking in the shadows

Remember that volatility begets volatility

Invest in preparation - insure against the worst-case-scenario

Take a large number of risks where the downside is clipped and well-understood (the risk of embarrassment is a good example of such a risk)

Focus on the knowledge as well as the confidence on the knowledge - calculate error rates whenever possible

Don’t play in uninsurable environments

Diversify. Massively

Be wary of conventional statistics (”R squared,” correlation) in domains where there is evidence for the existence of power-law behavior

Remember that uncertainty stems from unknowledge - chaos theory is not the same thing

In the short to medium term, the least fit can survive and even excel
Beware of “because” and inferring causation - especially if the downside of being wrong is high

The obvious can be overpriced

The past is not the future

Distinguish between domains with and without experts - know “how” vs. know “what”

There are always things that can be done even with no knowledge - acting under true uncertainty need not lead to decision paralysis

Disconfirmation is more powerful than confirmation - the problem of induction

Absence of evidence is not evidence of absence

Strive to balance searching and acting

Look for the presence of survivorship and availability bias

Question your premises

Impact matters - distinguish between frequency and impact

Always remember - rare events are unpricable

Prepare for the worst, hope for the best

Too much money is lost and too much money is missed
for two simple reasons: One, trying to predict the
future, and two, fearing the future.


George F. King

SOME RULES

1) What is the primary Trend
2) What is the current position
3) Act in Harmony with 1+2 ( Not Following behind )
4) Determine scale ( which trends )
5) manage risk

motorway

 

[Mr J]

Of everything I've read on this post. This is the one that makes the most sense.

Why??

Because you are buying as price is heading up and you are buying in the direction of the prevailing trend.

1. Trade with Momentum
2. Trade with Momentum
3. Trade with Momentum
4. Trade with Momentum
5. Trade with Momentum

Trailing Stop + Fixed Stop for Exits.

Tell that to investors that were buying stocks late '07. It's not enough to just trade in the direction of the trend, we need a good price, and a good price is always a low price. If all we had to do was trade in the direction of a trend, the entry wouldn't really matter, but it does, so more is required.

 

[tech/a]

Tell that to investors that were buying stocks late '07. It's not enough to just trade in the direction of the trend, we need a good price, and a good price is always a low price. If all we had to do was trade in the direction of a trend, the entry wouldn't really matter, but it does, so more is required.

Why? Give me an example when this has worked

God there's some rubbish on this thread.

 

[Aussiest]

God there's some rubbish on this thread.

It depends how high is "high". If you had have bought at the top of the bubble in 2007 and didn't have a stop loss, you'd be in trouble.

Would you really be game enough to enter a trade at the 4100-4200 level, given that there is still some uncertainty in the economy? I am quite happy to be proven wrong, i am not heavily invested in the market at the moment. Even if it pulled back to 4100, would you be game enough to enter with a large position?

Waiting for a pullback to 4100 (higher than the lows) could possibly be a safer entry than waiting for a selling spree and washout. I'm just a bit skeptical about the statement "buy high, sell higher" because it's not quantified enough. You might want to say, "once the lows have been tested twice, i am happy to enter".

 

[motorway]

It depends how high is "high". If you had have bought at the top of the bubble in 2007 and didn't have a stop loss, you'd be in trouble.

Would you really be game enough to enter a trade at the 4100-4200 level, given that there is still some uncertainty in the economy? I am quite happy to be proven wrong, i am not heavily invested in the market at the moment. Even if it pulled back to 4100, would you be game enough to enter with a large position?

Waiting for a pullback to 4100 (higher than the lows) could possibly be a safer entry than waiting for a selling spree and washout. I'm just a bit skeptical about the statement "buy high, sell higher" because it's not quantified enough. You might want to say, "once the lows have been tested twice, i am happy to enter".

Is anything too high or to low
in a absolute sense ?

Because really -->High and Low are relative terms

high Low in relation to a turning point--> to value point ( technical )--->
to an area of changing expectations--->to congestion---->to Accumulation or distribution--> from dullness etc

Buy Low relative to these
Sell high relative to these

Rule 6
Only use dynamic definitions
never static ones to define trends ( which are the Starting and End point of all analysis )

No how is important when it matters

motorway

 

[Mr J]

God there's some rubbish on this thread.

You're not talking about your comment are you? Because mine is fine.

 

[Aussiest]

You're not talking about your comment are you? Because mine is fine.

Ha, lol Mr J. I thought it was fine.

Thanks Motorway, that's actually a really good way of looking at it. It's sometime easy to get stuck in a linear, static way of thinking. "Relativity", what a concept! It certainly makes you think in the "here and the now".

 

[tech/a]

You're not talking about your comment are you? Because mine is fine.

Yes.
Your comment is absolute and utter rubbish.

Tell that to investors that were buying stocks late '07. It's not enough to just trade in the direction of the trend, we need a good price, and a good price is always a low price. If all we had to do was trade in the direction of a trend, the entry wouldn't really matter, but it does, so more is required.

This is the comment of someone who doesn't trade---only hypothesises.
If you did you would make such a stupid comment.
Anytime you want 3 or 4 examples backed by live trading records just let me know.
Both you and Aussi need to do some serious learning.

Highlghted for clarity.

 

[nunthewiser]

Yes.
Anytime you want 3 or 4 examples backed by live trading records just let me know.
Both you and Aussi need to do some serious learning.

Highlghted for clarity.

LOL all the examples you have shown could be off any number of demo accounts actually

there is nothing that has been produced by you to prove otherwise

how are those financial statements going for those buying "10 cars " at a time claims you made ?

havent seen any yet

do love your vivid imagination tho

jog on

p.s to those that techy is telling off because YOUR strategys dont fit in with his . dont let it worry ya i reckon .. after all he just another internet opinion/demo trader until he proves otherwise