To Trade By by Daryl Guppy
A good trader will have a trading plan. Here are some
guidelines for setting up your own trading rules.
In a raging bull market, it is
easy to forget that markets
make us pay for our mistakes.
In a bull market, the rules are
loose, the fools are many, and
money seems inexhaustible. In
a bull market, traders from
Main Street apparently make
money as easily as traders from
Eventually, however, the
novice trader must reach deep
into his pocket to pay for his or her losses. This should be
cause for reflection, but more often than not, it turns out to be
an excuse for blaming someone or something else. For the
trading survivors, it is a time to refresh their understanding of
the basic rules of trading.
The trading rules you’ll see here come from personal
experience and market insights. I use these observations as
personal trading rules. Like all my trading rules, they are
developed from experience to suit my specific trading style
and personality and to compensate for my weaknesses.
Novice traders initially need to rely on the perceptions of
others in building their own trading rules. The specific rules
you finally adopt will be different. Take what is appropriate
for you from these 15 rules, adding to them and modifying
them to suit your trading style.