12 Trading Rules

All Summer long, Hello Trader has been running a nice list of the top-12-trading-rules, along with a detailed explanation of each.

Apprenticed Investor readers will certainly recognize many of these. Here’s the short list, go to Hello Trader to see the rest.

Rule # 1: Let your winners run, cut your losers
short

Rule # 2: Don’t add to losing positions

Rule # 3: Don’t fight the trend / tape

Rule # 4: Buy strength and sell weakness, not the other way
around.

Rule # 5: Trade your personality

Rule # 6: Plan your trade and trade your plan

Rule # 7: When the reason for entering a trade is no longer valid, get out

Rule # 8: Don’t be the weak money

Rule # 9: Keep a trade diary

Rule # 10: Never risk more than 5 percent of your account equity on a trade

Rule # 11: Risk a fixed percentage of capital on every trade

Rule # 12: Focus on market selection

 

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