Rules from:Methods of a Wallstreet Master - Sperandeo

1. Trade with a plan


2. Trade with the trend. “The trend is your friend!”


3. Use stop loss orders whenever practical


4. When in doubt, get out!


5. Be patient. Never overtrade.


6. Let your profit run; cut your losses short.


7. Never let a profit run into loss.


8. Buy weakness and sell strength. Be just as willing to sell as you are to buy.


9. Be an investor in the early stages of bull markets. Be a speculator in the latter stages of the bull markets and in bear markets.


10. Never average a loss- don’t add to a losing position.


11. Never buy just because the price is low. Never sell just because the price is high.


12. Trade only in liquid markets.


13. Never initiate a position in a fast market.


14. Don’t trade on the basis of “tips”. In other words, “trade with the trend, not your friend”. Also, no matter how strongly you feel about a stock or other market, don’t offer unsolicited tips, or advice.


15. Always analyse your mistakes.


16. Beware of “TakeOvers.”


17. Never trade if your success depends on a other's good execution.


18. Always keep your own records of trades.


19. Know and follow the Rules!.