TRADING RULES

Small Losses only

Avoid big losses at all costs. The higher your % loss, the higher the % gain you need to get your money back. On a 50% loss, you need a 100% gain to break even

Control Risk

Know your exit criteria before you enter a trade.

Exit as soon as the reason for your entry is not valid anymore

Liquid Assets

Liquid assets are easier to exit. As a matter of fact, technical analysis is more reliable w/ highly liquid assets. Large volume makes it much more difficult to manipulate an asset

Buy Strong Assets, Short Weak Assets

A strong asset has less overhead resistance & better "flow"

Just The Charts

Trading for a living requires different skills. Everything you need to know is right there in front of you. If you can’t see it, it probably isn’t there.

Pattern Pressure

The asset needs to display some kind of basing pattern or consolidation pattern. Don’t chase or knife catch

Market Analysis

You need to know what kind of stage your asset is in with most of your Trades being in the direction of the primary trend.

Discipline

Stay disciplined. Keep emotions in check. Emotionally detached traders yield better results. Discipline will separate you from the pack