My Rules To Trading

  1. Your risk reward has to be at 3:1. The higher the better. Never lower
  2. Keep away from forex, binary options, crypto’s, etc. Anything unregulated you will 100% be getting ripped off one way or another.
  3. Respect risk but do not be afraid of it.
  4. 99% of technical analysis and 99% of systems are no better than random
  5. Think longer term.
  6. You cannot make profits every year.
  7. Have an exit point
  8. Ignore all stories, predictions and hype.
  9. It is important you stick to your system rather then constantly trying to create a new better one.
  10. Focus on US stocks. No need to trade any other market.
  11. It’s the losing trades that hurt you. Best to trade once a year and win than make ten random trades.
  12. Have a system rather than trade from gut feel.
  13. There is no trading guru. No one can predict anything.
  14. Master the basics. Cut losses, let profits run, money management. Ignore everything else.
  15. The only two books you really need are Jesse Livermore and Nicolas Darvas “How I Made $2 Million In The Stock Market.”
  16. Be careful in your pursuit of the Holy Grail. You will never find one. The very best you can hope for is about 70%-80% winners. So go for big % gains when you are right.
  17. Never attend a trading seminar. Traders do not run seminars. Marketers do.
  18. The market is the most important factor.
  19. Common sense trumps everything. Successful trading systems make sense and are quite basic.