Rules

A discussion on trading rules.

Public sustain strong trends
The public interest and participation is the pre-requisite for providing "madness of crowds", the very fuel that sustain big and strong trends. To have big gains, somebody has to be lured into taking big losses - public.

Patient entries decisive exits
Most of the time spent in trading is in waiting. Waiting for breakout, waiting to reach support, waiting to reach target price, cutloss price etc. You can say that its patient & decisive entries/exits.

Trade along with major trend
Plainly obvious, you are stacking the odds on your side. By identifying major trend correctly, you can still make money with improper entry. Remember this, only major trend yield big profits.

Have a cutloss and stick to it
When price shoot pass cutloss and you did not cut, you might end up keeping the stock in the freezer. When you ultimately have to cut, it does much more damage to your confidence and capital.

Let profits run when running
With prospect theory, people have tendency to take quick profits for fear of losing them. Dont. Let profits run on it own, when its still running. When its no longer running as it should, get out.

Price never need a reason
Prices never need a reason to move. Those business analysts are just finding excuses after a price movement. Its their job. Respect actual price action instead of rumours or personal opinion.

Never ever average down
Why make further commitments to a losing position? For price to move against you means higher probability of a wrong position. Never do this unless its part of plan building a position.