Thursday, December 28, 2006

Trading Rules

When I first began trading years ago, I was mainly focused on commodities because I worked on the trading floor of the commodities exchange.. Back then I studied many traders, analysts and I was always asking questions. I even did charting by hand! One person who had an impact on my trading back then was Jake Bernstein who is well known in the commodity industry. I've followed his work for many years and I've learned alot. His website can be found here at I think Jake's trading rules are very they are.

Jake Bernstein’s Trading Rules
􀂾 If you can’t test it, don’t trade it
􀂾 If you have to think too long you’re about to lose
􀂾 Don’t analyze - actualize
􀂾 Too many inputs= too little reality
􀂾 The smaller the stop loss the worse the results
􀂾 Find your time frame and trade within that time frame
􀂾 Get organized or get out
􀂾 Diversify or die
􀂾 The big money is made in the big time frame
􀂾 Don’t average in but scale out
􀂾 Common thinking gets common results
􀂾 Common results means that you WILL lose money
􀂾 The small trader isn’t always wrong
􀂾 The large trader isn’t always right
􀂾 By the time you hear the news it’s old news
􀂾 Look at enough indicators and you’ll find what you want
􀂾 Most indicators have never worked and never will
􀂾 Normal market behavior teaches us nothing
􀂾 Never trust the markets to do what you think they should do -
trust only yourself to do what you have to do
􀂾 Diversify across markets, systems and time frames
􀂾 Avoid on line market chat rooms - they’re poison!
􀂾 If it seems logical then it’s probably wrong
􀂾 Leave your losing personal habits at home
􀂾 Bigger and faster computers do not necessarily lead
to better results
􀂾 Study time is not proportional to profits
􀂾 More is not necessarily better either in indicators,
information, or computer power
􀂾 Unusual market behavior brings unusual opportunities
􀂾 High accuracy does not always lead to profits
􀂾 A few good trades will make all the difference
􀂾 Setup -Trigger and Follow -Through will change your life
􀂾 Time is more important than price
􀂾 Risk is more important than reward
􀂾 What you do with profits is more important than
how you take your losses
􀂾 If you can’t take at least six consecutive losses
then don’t even think about trading
􀂾 Traditional moving averages get traditional results

1 comment:

Ev said...

Kevin, thanks for trading rules. Enjoy your blog; just found recently. May you have a Happy Healthy New Year! Ev


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