Most Popular
1. Dow Max Drawdown Bear Stock Market 2022 - Accumulating Deviations from the Highs - 21st Feb 22
2.Putin Starts WW3 in Ukraine, Will Use Tactical Nuclear Weapons, China Prepares Taiwan Blitzkrieg - 28th Feb 22
3.World War 3 Phase 1 - Putin WINS Ukraine War! - 25th Feb 22
4.INVESTORS SEDUCED by CNBC and the STOCK CHARTS COMPLETELY MISS the BIG PICTURE! - 10th Feb 22
5.Will There Be A 2024 US Presidential Election? - 3rd Mar 22
6.Gold and SIlver, Precious Metals Sector Is at a Terrific Buy Spot - 6th Feb 22
7.Why Putin Wants the WHOLE of Ukraine - World War 3 Untended Consequences - 6th Feb 22
8.Dow Stock Market Expected Max Drawdown 2022 - 19th Feb 22
9.Stock Market Calm In the Eye of the Inflation Storm - 4th Mar 22
10.M = F - Everything is Waving! Stock Market Forward Guidance - 7th Mar 22
Last 7 days
Why APPLE Could CRASH the Stock Market! - 21st May 22
Why Is Crude Oil Ignoring US Inventories? - 21st May 22
Here is Why I’m Still Bullish on Gold Mining Stocks - 21st May 22
THE INFLATION MEGA-TREND QE4EVER! - 20th May 22
US Real Estate Investors – Is There An End In Sight? - 20th May 22
How Technology Affected the Gaming Industry - 20th May 22
How To Set And Achieve Reasonable Goals For Your Company - 20th May 22
How Low Could the Amazon (AMZN) Stock Price Fall? - 19th May 22
Bitten by FANG? Clocked by Cryptos? -- 'Air Pockets' Everywhere - 19th May 22
Northern General Hospital Orthopedics Fractures and and Ankle Clinic Consultations Real Patient Experience - 19th May 22
Cathie Wood Goes All in on Teladoc, ARKK INSANE Noob Investing Strategy! - 17th May 22
This is Anything but Positive for US Housing Market - 17th May 22
What Should We Do If There Is No Fed Monetary Policy Pivot? - 17th May 22
All Possible Ways to Earn Free Litecoin - 17th May 22
How low Could the Amazon Stock Price Fall? - 16th May 22
Cathy Wood ARKK INSANITY There is NO Coming Back! - 16th May 22
NASDAQ 100 Stock Market LOWER LOWS & LOWER HIGH - 16th May 22
Sanctions, trade wars worsen US inflation - 16th May 22
AI Tech Stocks Earnings BloodBath Buying Opportunity - 14th May 22
Futures Contract – Trading Crude Oil With USO - 14th May 22
How to Get Kaspersky Internet Security for 80% Discount! Do not Pay Renewal Price! - 14th May 22
Sagittarius A* Super Massive Black Hole Monster at Centre of Our Galaxy REVEALED! - 14th May 22
UK Public Debt Smoking Inflation Gun - 13th May 22
What Happens When the Stock Market Dip Keeps Dipping? - 13th May 22
Biden Seeks Inflation Scapegoats; Gold Advocate Wins GOP Primary - 13th May 22
Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - 12th May 22
The War on Gold Ensures the Dollar’s Downfall - 12th May 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Trading Rules

InvestorEducation / Learn to Trade Apr 09, 2008 - 01:41 AM GMT

By: Christopher_Quigley

InvestorEducation

Rules Of The Trade 

Rule 1. To trade successfully you must develop your own system and approach. To do this you must work the market out for yourself. The best way to start this process is to first learn how others before you mastered this task successfully. Thus become educated, informed and aware and stay that way.  


Rule 2. Never purchase equities at market price; always use a price limit.  

Rule 3. Upon entering a position the maximum loss entertained should be approximately 3%. Thus be prepared to cut your losses early should the price action go against you.    

Rule 4. As the price of the stock rises (or falls if you are short) raise your stop accordingly, thus allow your winners to run.    

Rule 5. Prior to investing in any equity pay particular attention to the risk reward ratio. The essence of the market is risk and for you to be profitable in the long run the risk must make sense in terms of probable and potential returns.    

Rule 6. Your potential portfolio of stocks chosen by fundamental analysis should comprise no more than 10/20 stocks. Know everything there is to know about your listing including price history, financials, business model, management and earnings dates. When you become experienced you can modify the degree of diversification in favour of focus.    

Rule 7. When starting out do not invest more than 10% of your investment fund until you have proven your ability to make good investment decisions in real time in the real market. Ideally you should paper-trade for 3-6 months before using real money.    

Rule 8. Keep a diary for note taking, analysis and review.    

Rule 9. The ideal time to trade is the last 1-2 hours of trading.    

Rule10. Be consistent in your approach. Discipline will help you to eliminate emotion from the process and allow experience, logic and technique to prevail.    

Rule 11. Always know the trend of the market and your equities. The trend is definitely your friend and be aware that in a bull market, in the main, significant averages will be price supports whereas in a bear market the averages will be price resistances.    

Rule 12. Be patient and learn to realise that if no investment prospect presents itself very often the best place to be is in cash since the most important trading rule of all is: PROTECT YOUR CAPITAL.

By Christopher M. Quigley
http://www.wealthbuilder.ie

Mr. Quigley is 46 years of age and holds a Batchelor Degree in Management from Trinity College/College of Commerce, Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the Stock Market in San Francisco, California where he lived for 6 years. Now based in Dublin, Mr. Quigley actively trades utilising the principles set out in the modules above. This Wealthbuilder course has been developed over the last 9 years as a result of research, study, experience and successful application.

Christopher M. Quigley Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in