What are your top 5 trading rules???

[nunthewiser]

1. always know how much you will lose before you enter the trade and stick to it.


2. a stock is a 3 letter word , to be used and abused do not fall in love with it


3. do not trade to gain back a loss


4. in the heat of the moment , take a step back and look again


5. opinions are like arseholes , everybody got one .........listen to all but paddle your own canoe at the end

 

[nunthewiser]

6. double check all orders submitted

 

[tech/a]

And there are plenty of "low" prices visible on that chart. There would be many, many more on a faster chart. I think you may be misunderstanding my definition of a low price. It doesn't have to be low visually on a chart, but low relative to the prices surrounding it. A low price is simply what a trader would view as an attractive price.


That has absolutely nothing to do with what I'm talking about.

Show me a low on a Chart that you ARE talking about.
An example.

Your arguement has no substance regardless of timeframe.
Just let me know which timeframe each chart is in.

 

[beamstas]

1. Timing is everything
2. Believe in your self (Back your decisions)
3. Give trades time to come good (assuming u got the stock selection right)
4. Don't be afraid to average down (assuming u got the stock selection right)
5. U wont always get the timing right or selection Oh and trade your plan.

Flip this upside down and you get my thoughts

1. Timing is nothing. Trade management is everything.
2. Don't believe in yourself, if you are wrong then forget about it. Next Trade.
3. Cut losing trades off fast.
4. Never average down. Averaging up is OK.
5. I agree here, you won't always get the selection right.

 

[tech/a]

Ah some sence.

 

[nunthewiser]

7. never let other ppls ideas of how you should trade blind you to trading a very profitable support/resistance bounce at least they can provide a very nice low% loss point on historically defined stoploss levels

 

[nunthewiser]

4. Never average down. Averaging up is OK.
.

joe bloggs bought 1000 xyz at 10 bucks when he first entered the market , knew nothing about stoplosses etc

xyz now $1 mr bloggs now has a bit of knowledge/ experience behind him and spots an awesome reversal pattern ......he buys 30,000

is he wrong for taking on the same stock as a new trade in the process creating an exit for his long term anchor hold ?

 

[beamstas]

joe bloggs bought 1000 xyz at 10 bucks when he first entered the market , knew nothing about stoplosses etc

xyz now $1 mr bloggs now has a bit of knowledge/ experience behind him and spots an awesome reversal pattern ......he buys 30,000

is he wrong for taking on the same stock as a new trade in the process creating an exit for his long term anchor hold ?

Apples and Oranges

 

[Mr J]

Ah some sence.

Sense.

Your arguement has no substance regardless of timeframe.

That's because you have no idea what I'm talking about. It's partly my indirect way of explaining it, but it's also you being unwilling to see things from another point of view, particularly before rubbishing it.

We know that everything is relative. Markets move on many different timescales, and each will tell a different story. A 1min chart will be doing one thing, a 5 min chart something else, a 15 min chart something else again and so on. Moves on faster charts coincide those of slower charts so what may be a retracement on one chart is a trend on another.

To relate this to my point about "low" (attractive) prices, my point is that any good trade will probably occur at a "low" price on one chart, regardless of where it is on the chart at which we are watching. The trade will probably also correspond better to that other chart than the one we are watching.

For example, say we are watching a chart and the current wave has been running some time. We enter anyway, at a relatively high price, because we think it will run some more. This may seem like a bad trade because we are entering on what seems to be a high price. However, it may very well be a wave of its own on a faster chart. The trade will look completely differently on the two different charts. On the slower chart, it looks like we've entered high up in the wave to sell at a slightly higher price. However, on the fast chart we may have entered on a trough and sold at a peak.

I mean this example to show that buying high and selling higher can also be buying low and selling high from another perspective (a different timescale). Therefore, I believe my point about buying low and selling high (in either direction) is true.

Flip this upside down and you get my thoughts

1. Timing is nothing. Trade management is everything.
2. Don't believe in yourself, if you are wrong then forget about it. Next Trade.
3. Cut losing trades off fast.
4. Never average down. Averaging up is OK.
5. I agree here, you won't always get the selection right.

1. One could consider timing to be part of trade management. Also, timing could be defined several ways.
2. Belief in oneself could just be considered confidence.
3. Not a flipside really, as one can cut losers and give trades time.
4. I imagine this is okay in the right hands.
5. Arguable. If we receive 2:1 on a heads but it comes up tails, were we wrong?

Not saying you're wrong, just another way of looking at it.

 

[gamefisherman]

A HUGE THANK YOU TO ALL THOSE WHOM HAVE CONTRIBUTED..........We really appreciate it, even the comical ones..........lol

We are in the process of going through each post and adding notes to our stock study book.........Due to the great number of good ideas its already over 2 pages.....................

We usually like to send a personal message to people that post in our threads but due to the number of replies this isnt feasible.........but please know that we are very grateful for all the advice you have written........... great site.......and great people..........

Cheers

 

[Nickj]

Attached are 25 good Trading Rules that are pretty well explained.

Hope it helps

 

[nunthewiser]

HEY MAN THANKYOU .

not often a thankyou comes ......onya

i do hope theres the odd bit here that maybe of use .

i would like to apologise on behalf of a few of our one eyed posters , i think they all quoting from the same book, so in there view that makes them right and eveyone else wrong ........

not to worry tho , in the real world we all know that life/markets is not just black and white and i do hope you succeed in your foray into the markets

cheers

 

[tech/a]

joe bloggs bought 1000 xyz at 10 bucks when he first entered the market , knew nothing about stoplosses etc

xyz now $1 mr bloggs now has a bit of knowledge/ experience behind him and spots an awesome reversal pattern ......he buys 30,000

is he wrong for taking on the same stock as a new trade in the process creating an exit for his long term anchor hold ?

Awsome reversal fails and trade falls to $10c so he buys another 500,000 stock is delisted. HIH comes to mind there are countless more.
All he had to do was buy at $10 and sell at a protective stop of say $9.80.

Sense.



That's because you have no idea what I'm talking about. It's partly my indirect way of explaining it, but it's also you being unwilling to see things from another point of view, particularly before rubbishing it.

We know that everything is relative. Markets move on many different timescales, and each will tell a different story. A 1min chart will be doing one thing, a 5 min chart something else, a 15 min chart something else again and so on. Moves on faster charts coincide those of slower charts so what may be a retracement on one chart is a trend on another.

To relate this to my point about "low" (attractive) prices, my point is that any good trade will probably occur at a "low" price on one chart, regardless of where it is on the chart at which we are watching. The trade will probably also correspond better to that other chart than the one we are watching.

For example, say we are watching a chart and the current wave has been running some time. We enter anyway, at a relatively high price, because we think it will run some more. This may seem like a bad trade because we are entering on what seems to be a high price. However, it may very well be a wave of its own on a faster chart. The trade will look completely differently on the two different charts. On the slower chart, it looks like we've entered high up in the wave to sell at a slightly higher price. However, on the fast chart we may have entered on a trough and sold at a peak.

I mean this example to show that buying high and selling higher can also be buying low and selling high from another perspective (a different timescale). Therefore, I believe my point about buying low and selling high (in either direction) is true.

.

Trading retracements or trading continuations each is simply presenting a setup for a trade. Each could succeed or fail. Neither entry mechanism is the key to more profit.
Exit could be
Trade management will certainly be.

I fully understand your "Logic" Buying at $8 on a pullback/double bottom/bottom of a Bollinger band/Major support is better than buying a high at $10 when a stock climbs to $20.You wont ever know before hand wether you'll be looking at this scenario in hindsite.

My arguement is that many will never re visit a price lower than a new high---so we wait--and wait---and wait worse we dont consider the trade?
Price may also reach Serious Major support only to fall 3 days later to even lower amounts.

Your entry regardless of what it is or how you come about it is nothing more than a starting point!

Attached are 25 good Trading Rules that are pretty well explained.

Excellent.

 

[nunthewiser]

Awsome reversal fails and trade falls to $10c so he buys another 500,000 stock is delisted. HIH comes to mind there are countless more.
All he had to do was buy at $10 and sell at a protective stop of say $9.80.



!

i see you didnt read my post re stoploss and joe bloggs not knowing etc , dont matter .... he is now a bit more experienced and would have stopped out on all hold at 98 cents as he picked an entry at $1 that provided a definate major support line ...


dont matter was merely a hypothetical scenario

 

[tech/a]

in the real world we all know that life/markets is not just black and white

Actually both life and trading should be exactly that.
Black or White NO grey.
Life becomes far simpler and so does trading.

 

[beamstas]

The bricklayer analogy in that pdf is great

Brick by Brick..

 

[Mr J]

I fully understand your "Logic" Buying at $8 on a pullback/double bottom/bottom of a Bollinger band/Major support is better than buying a high at $10 when a stock climbs to $20.

I'm not saying buy on a pullback, I'm just saying that buying a high price isn't necessarily a high price. If we buy into what we think is a higher point in the wave because we think it's going to break out or something, then it's not really a high point in the wave (at least by our judgement). If we buy into a higher point of the wave looking for momentum to carry it a little higher, we're probably making a trade that better relates to a faster chart, and on that faster chart we would have been buying into or after the retracement (we may miss these on the slower chart, so the trade isn't really efficient on the slower chart).

Your entry regardless of what it is or how you come about it is nothing more than a starting point!

Agreed, but we enter because we think we're getting a good price - we think we're getting a discount to where price will be in the future. I think we've just got a bit of potatoe-potahtoe going on here, may be that I have a weird way of looking at things, and maybe a weird way of explaining it.

Actually both life and trading should be exactly that.
Black or White NO grey.
Life becomes far simpler and so does trading.

I would say it's both. It's as simple or complicated as we make it. But then maybe you don't disagree, and you're just suggesting to keep it simple?

 

[Aussiest]

Well, two of mine are:

1. When in doubt, don't

2. Hold out for your entry or exit level if all else looks reasonable. Eg, if you know you can squeeze a bit more out of a trade, stick with it. Don't panic or get complacent and close out too early.

 

[beerwm]

sounds like bull-market talk-

buy low / average down / give trades time to turn good

cause everything eventually goes up.....right?

 

[Wysiwyg]

Attached are 25 good Trading Rules that are pretty well explained.

Hope it helps

Makes me wonder what he uses to enter trades. Coins

I’m unable to even set up a Fibonacci study or Moving Average study on a charting package, let alone know how to trade with such data. I have no formal training in market fundamental analysis. I don’t understand the economic causal relationship between the actions of the Federal Open Market Committee and Treasury bond prices or equity prices.

How, then, have I been able to succeed,day after day, trading the markets for more than 20 years?