- Always analyze a security in conjunction with others in its relative market.
- Don't get fooled by the head fake. If a break occurs within a converging price channel, most likely it is false.
- Trade the channels and the overall trend. Wait for retracements and forget the it's going to reverse mindset.
- Learn from your losses - they will probably be the most expensive lessons you will encounter.
- The best time to place an entry position is when the volume begins to rise.
- Draw all trend lines from right to left - the present is more important than the past when you wish to trade in the future.
- Focus on your personal trading setups, not the money. Only your personal strategy will work, not someone else's.
- The market makes many highs and many lows in a day, but only one true high and one true low in that day.
- It is better to be out of the and market wishing you were in than in the market and wishing you were out.
- Know your entry and exit before you place a trade.
- Technical Analysis is best used for short-term trading.
- Lower the risk level until you find your sufficient sleep level.
- Get out of all losing trades the day of entry.
- Don't trade on the news, it's history to the markets by the time it reaches you.
- Trade what you see, not what you think.
- The longer the time frame, the wider the stop.
- Never trade more than 10% of your account.
- Buy the rumor, sell the news.
- The trend is your friend.
- Mental stop losses are rarely sufficient for cutting your losses.
- Never trade based on trend without sufficient volume and/or strength of a trend (ADX indicator).
- Use Weekly charts for discovering a trend. then use a daily chart for timing your trade based on that trend.
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