Rules to Follow

RULE # 1. Never lose money!

RULE # 2. Never forget Rule # 1!

RULE # 3. Never risk more than 1/10th of your account. For example if you have an account that is worth $100,000.00 invest only up to $10,000.

RULE # 4. Always be flexible to market change. For example, if you predict a certain stock to go up or down, it may change the trend at anytime.

RULE # 5. “If you give me money, you will not get it BACK”. Do NOT lose the money that was made previously. Guard it with all of your power.

RULE # 6. Always have an exit strategy. If a trade is not going in your favor then make sure you get out of it.

RULE # 7. Write down your trade Plan. Make sure to know your entry level price and your exit level price from a trade.

RULE # 8. Do not trade too many Stocks. It is better to know the cycles of 3-5 stocks completely than knowing not much about a lot of stocks.

RULE # 9. Whatever the crowd says about the Markets, do the opposite. Crowd is never been right about choosing the Tops or Bottoms of the market.

 

One thought on “Rules to Follow

  1. Hi Sam. How are you? Thank you for posting all this stuff. Particularly with these rules for investing. Right now, I have to meet some very important deadlines for this class, so I will have more time to go over this later. Needless to say, I mean that after this semester is over, I will have time to go over some of the stuff you put down. For now, The only rule I know that I follow in life is rule #1. Rule #2 is something I stress to myself, but one way or another, I do not always follow through. Alright. Break.

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