Top Trading Rules

1. Make sure the stock has a well formed base or technical pattern before considering purchase.

2. Buy the stock as it breaks out the trend line of that base or pattern and make sure that volume is above 20 days moving average.

3. Never Chase a Gap up or a stock that is up more than 5% above the trend line daily.

4. Be very quick to sell stock should it return back under the trend line or breakout point. 5% stop loss rule. (3% in a downtrend markets).

5. Always move up your stop to protect your profit and never let a winning trade become a loser, even in break-even.

6. Control your emotion, once the stock hit your stock, you out!

7. Hold your strongest stocks the longest and sell stocks that stop moving up or are acting weird quickly. There are no good stocks; there are only stocks that make you money. Don’t fall in love with any stocks.

8. Don’t over trade the market. When market is bad, no trade is better. Cash is king.

9. Study the market everyday and never give up.

Download PDF file: Top Rules


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