Trading Rules

[Eugine]

1.Some traders consider trading as a sort of gambling. Without planning and calculations, they throw money at the market. They should distance themselves from gambling behavior. Why a scientific approach is applicable? Markets echo similar patterns over and over again. It allows identify reliable trends and select good trading vehicles.
2.Think in terms of probabilities and act upon them.There are no certainties in trading. You can keep yourself out of trouble by thinking in terms of probabilities. Get comfortable with approximate predictions and interpretations.
3.Hope, fear and greed are not strategies: they are emotions. Simple emotions are not an effective strategy. Positive emotions could cause us to fail to apply riskprecautions.  Negative emotion could cause us to hesitate. 
Trading is a psychological game. Most people think that they're playing against the market,but the market doesn't care. You're really playing against yourself.
4.Prices have memory.
5.Bulls live above 200-day moving averages, bears live below and try to eat up all rally attempts.
6.Big volumes kill substantial price moves.
7.Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.
8.Bottoms take longer to shape than tops. Greed acts more quickly than fear and pushes stocks to drop from their own weight.