Trading Carefully Discipline matters a lot for a trader to win, apart from some contrarian plays. You may think about some nice habits, I collected from books and here and there, However, our experience is our best teacher, if we avoid doing mistakes repeatedly. Go with the market and be with the market.
Rules :
1. Instead of looking into the news, study the chart carefully. Before the news affects the price, the chart tells the news is coming.
2. Buy at the first pullback from a new high. Sell at the first pullback from a new low. There's always a crowd that missed the first train.
3. Buy at a support, sell at a resistance. Panic time is when the mass get into action.
4. Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.
5. Don't buy up into a major moving average or sell down into one.
6. Don't chase momentum if you can't find the exit. Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble. Patience is the key factor here.
7. Trade in the direction of gap support whenever you can. Take risk in favor of directions.
8. Trends test the point of last support or resistance. Be confident to enter here.
9. Trade with the TICK . Go where the money flows.
10. If you have to look, it isn't there. Apply commonsense and trust your instincts.
11. Sell the second high, buy the second low. After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.
12. The trend is your friend in the last hour. As volume cranks up few minutes before close, don't expect a miracle to change the channel.
13. Avoid the open. Start trade after one hour and end trade before one hour of a session, try to be in-between.
14. Look for downtrends to reverse after a top, two lower highs and a double bottom.
15. Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.
16. Price has memory. What did price do the last time it hit a certain level ? Chances are it will do it again.
17. Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.
18. Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.
19. Bottoms take longer to form than tops. Greed acts more quickly than fear and causes stocks to drop from their own weight.
20. Beat the crowd in and out the door. You have to take their money before they take yours.
Rules :
1. Instead of looking into the news, study the chart carefully. Before the news affects the price, the chart tells the news is coming.
2. Buy at the first pullback from a new high. Sell at the first pullback from a new low. There's always a crowd that missed the first train.
3. Buy at a support, sell at a resistance. Panic time is when the mass get into action.
4. Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.
5. Don't buy up into a major moving average or sell down into one.
6. Don't chase momentum if you can't find the exit. Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble. Patience is the key factor here.
7. Trade in the direction of gap support whenever you can. Take risk in favor of directions.
8. Trends test the point of last support or resistance. Be confident to enter here.
9. Trade with the TICK . Go where the money flows.
10. If you have to look, it isn't there. Apply commonsense and trust your instincts.
11. Sell the second high, buy the second low. After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.
12. The trend is your friend in the last hour. As volume cranks up few minutes before close, don't expect a miracle to change the channel.
13. Avoid the open. Start trade after one hour and end trade before one hour of a session, try to be in-between.
14. Look for downtrends to reverse after a top, two lower highs and a double bottom.
15. Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.
16. Price has memory. What did price do the last time it hit a certain level ? Chances are it will do it again.
17. Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.
18. Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.
19. Bottoms take longer to form than tops. Greed acts more quickly than fear and causes stocks to drop from their own weight.
20. Beat the crowd in and out the door. You have to take their money before they take yours.
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