StockFetcher Forums · General Discussion · Notes I have been collecting<< 1 2 >>Post Follow-up
holygrail
72 posts
msg #27214
Ignore holygrail
7/5/2003 9:11:45 PM

For the record, this is NOT Holygrail. This is his trading buddy.


=======================================================================
from THE TRADING ZONE, Mark Douglas

page 121

1) Anything can happen

2) You don't need to know what is going to happen next in order to make money.

3) There is a random distribution between the wins and losses for any given set of variables that define an edge.

4) An edge is nothing more than an indication of a higher probability of one thing happining over another.

5) Every moment in the market is unique.

page 185

I AM A CONSISTENT WINNER BECAUSE:

1) I objectively indentify my edges.

2) I predefine the risk of every trade.

3) I completely accept the risk or I am willing to let go of the trade.

4) I act on my edges without reservation or hesitation.

5) I pay myself as the market makes money available to me.

6) I continually monitor my susceptibility for making errors.

7) I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.

======================================================================
FOLLOW THESE STOCK TIPS FOR SUCCESSFUL DAYTRADING

BUY LOW SELL HIGH

TAKING SMALL PROFITS = HUGE GAINS

USE STOP LOSSES (7-10%)

BE AWARE THAT MARKETS ARE MOVED BY GREED & FEAR

ALWAYS DO YOUR OWN DUE DILIGENCE

USE THE STOCK PICKS AS A WATCH LIST DON'T JUST BUY BLINDLY

DON'T FALL IN LOVE WITH YOUR STOCKS (have "short affairs" with them)


=======================================================================
Trading Rules
=======================================================================

1. Plan your trades. Trade your plan

2. Keep records of your trading results.

3. Keep a positive attitude, no matter how much you lose.

4. Don't take the market home.

5. Successful traders buy into bad news and sell into good news.

6. Successful traders are not afraid to buy high and sell low.

7. Successful traders have a well-scheduled planned time for studying the markets.

8. Successful traders isolate themselves from the opinions of others.

9. Continually strive for patience, perseverance, determination, and rational action.

10. Limit your losses - use stops ! ( mental imo )

11. Never Cancel a stop loss order after you have placed it!

12. Place the stop at the time you make your trade.

13. Never get into the market because you are anxious because of waiting.

14. Avoid getting in or out of the market too often.

15. Losses make the trader studious - not profits. Take advantage of every loss to improve your knowledge of market action.

16. The most difficult task in speculation is not prediction but self - control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.

17. Always discipline yourself by following a pre - determined set of rules.

18. Remember that a bear market will give back in one month what a bull market has taken a three months to build.

19. Don't ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves against you 20% from your peak profit point.

20. You must have a program, you must know your program, and you must follow your program.

21. Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.

22. Split your profits right down the middle and never risk more then 50% of them again in the market.

23. The key to successful trading is knowing yourself and your stress point.

24. The difference between winners and losers isn't so much native ability as it is discipline excercised in avoiding mistakes.

25. In trading as in fencing there are the quick and the dead.

26. Speech may be silver but silence is golden. Traders with the golden touch do not talk about their success.

27. Dream big dreams and think tall. Very few people set goals too high. A man becomes what he thinks about all day long.

28. Accept failure as a step towards victory.

29. Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker! Don't let ego and greed inhibit clear thinking and hard work.

30. One cannot do anything about yesterday. When one door closes, another door opens. The greater opportunity always lies through the open door.

31. The deepest secret for the trader is to subordinate his will to the will of the market. The market is truth as it reflects all forces that bear upon it. As long as he recognizes this he is safe. When he ignores this, he is lost and doomed.

32. It's much easier to put on a trade than to take it off.

33. If a market doesn't do what you think it should do, get out.

34. Beware of large positions that can control your emotions. Don't be overly aggressive with the market. Treat it gently by allowing your equity to grow steadily rather than in bursts.

35. Never add to a losing position.

36. Beware of trying to pick tops or bottoms.

37. You must believe in yourself and your judgment if you expect to make a living at this game.

38. In a narrow market there is no sense in trying to anticipate what the next big movement is going to be - up or down.

39. A loss never bothers me after i take it. I forget it overnight. But being wrong and not taking the loss - that is what does the damage to the pocket book and to the soul.

40. Never volunteer advice and never brag of winnings.

41. Of all speculative blunders, there are few greater than selling what shows a profit and keeping what shows a loss.

42. Standing aside is a position.

43. It is better to be more interested in the market's reaction to new information that in the piece of news itself.

44. If you don't know who you are , the markets are an expensive place to find out.

45. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word - Nobody! Thus the successful trader does not base moves on what supposedly will happen but reacts instead to what does happen.

46. Except in unusual circumstances, get in the habit of taking your profit too soon. Don't torment yourself if a trade continues winning without you. Chances are it won't continue long. If it does, console yourself by thinking of all the times when liquidating early reserved the gains that you would have otherwise lost.

47. When the ship starts to sink, don't pray - jump.

48. Lose your opinion - not your money.

49. Assimilate into your very bones a set of trading rules that works for you.
=============================================================================


KEY TIMES DURING THE MARKET DAY FOR TRADERS
As you will see, there are key times that we look for during the trading day as being pivotal. Most days, the action centers around those times. Other times of the day are more suitable for a trip to the gas station or lawn bowling; Here are the pivot times we look at for signs of life: (All times are EST)

9:30-9:50...Approx first 20 minutes of trading day. Time when beginning traders lose money on whipsaws and experienced ones capture quick profits. Avoid if you are the former.

9:50-10:10..Oftimes a period of reversal for early morning trades. Market begins to settle into reality as early morning traders take their profits and swing traders look for opportunities.

10:10 to 10:25...usually a continuation of whatever trend was set up in last period.

10:25-10:35 ...A decision point for traders. Many times a turning point reversal or accelerated continuation of previous setup.

11:15-2:00...go bowling...this is the "dangerous time of day" . Traders lunch out and scalpers try to push the indices around to make a quarter here or there.

2:00-2:30...market usually begins to pick up steam:

2:30-3:00...called the 3:00 bubble, even on weak days can show strength into the next pivot point

3:05..if last period was just a bubble, will begin to break here, Otherwise can be a good pivot point.

3:25-3:35...for trending days, this is the time when trends tend to play out

3:40-3:45...can see reversals or acceleration into the close. Reason is that all floor traders have their MOC orders in and everyone has a pretty good idea where the closing range will be.

:: Henry Ford ::
=======================================================================

TRADING RULES AND DISCIPLINES
By Brad (Iceman039)


1) Always write down your trading rules and disciplines; never assume you know them all. A written set of rules and disciplines show you are committed to this business. You can add to these rules as you trade and develop strategies.

2) Always refer to and follow your “pre-determined” rules and disciplines. Don’t just write these down, refer to them regularly and “live” by them. Be disciplined - the market pays you to be disciplined.

3) Treat trading as if it is your own business. You are the President and C.E.O. of your own company. This is real money; it’s your money - protect your interests at all times.

4) Always use “stop-loses” and stick to them. Know your stop-lose before you enter a trade and put it into play.

5) Never let a winning trade turn into a losing trade. Profits are profits no matter how small and they all add up in the end. Remember, “no one ever lost money taking a profit”.

6) Never let a day-trade turn into a bad investment. It may be big enough to take you right out of the trading business and see you sitting on the sidelines. DON’T BECOME A “BAG-HOLDER” !

7) A true day-trader is “flat” at the end of each day. Be “clean and green”.

8) If you make 3 or more bad trades in a row - STOP TRADING. Go back to “paper trading”. Once you have made 3 or more successful trades then re-enter the “real money” trades with a lower than usual share amount. Earn the right to trade larger share quantities.

9) Leave your emotions out of the trading business. Your emotions will never effect the direction of a stock and its value. If you lose at a trade except your loses “gracefully” and move on. Don’t waste time “stewing” over the trade or you may miss out on the next opportunity.

10) Do not take a trade just to trade because you’re anxious to get back in. Always know why you’re going into a trade before you buy into it. Plan your trades and trade your plans.

11) Never trade a stock with average volume less than 500,000 shares per day.

12) Do not chase a stock, forget it and move on. The opportunities are endless and the market will always be there.

13) Don’t expect to make it all happen on one trade. Take a series of small profits and at the end of the day they’ll all add up. You are more than likely to “lose it all” on one trade then “make it all” on one trade.

14)If you’re not in the right state of mind to trade today because of “outside influences” then take the day off and come back with a clean head. Remember, it’s your business and you’re the boss.

15) Trade within a “trader friendly environment” which is comfortable for you and offers minimum distractions.

16) HAVE FUN ! If you don’t enjoy trading then stop and find another line of work.

For the record, this is NOT Holygrail. This is his trading buddy.


DISCLAIMER

We are not liable for any investment decisions by the reader. The information offered is not to be construed as an offer to buy or sell any securities. All information obtained is from sources deemed to be reliable but is not guaranteed. Information for the stock observations was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the stock observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

We are not brokers. NO advice is given or implied. This information is for educational purposes ONLY. Nothing should be considered a recommendation to buy or sell any stock or security. We strongly recommend that you consult with a professional broker or financial planner before you buy or sell any stock or security. We believe the information in this publication to be true but assume no responsibility for any incorrect information. This is not a solicitation to buy or sell any security. The author may at times hold positions in any of the stocks mentioned in this document. Investing in securities carries a high degree of risk and you can lose all of your investment money. Past performances do not guarantee future results. Please consult with your own independent tax, business and financial advisors with respect to any investment, including any contemplated investment in any company mentioned. All information contained in this publication must be independently investigated for accuracy. We will NOT be responsible for the consequences of anyone acting on this purely educational material.

For the record, this is NOT Holygrail. This is his trading buddy.



ig0r
51 posts
msg #27224
Ignore ig0r
7/6/2003 12:07:35 AM

Some good stuff in there, it seems long but its a good read


TheRumpledOne
6,358 posts
msg #56913
Ignore TheRumpledOne
11/21/2007 3:27:55 PM

Finally found out where the trading rules came from:


=======================================================================
Time Tested Classic Trading Rules for the Modern Trader to Live By
by Linda Bradford Raschke

http://www.traderslog.com/trading-rules.htm
=======================================================================

1. Plan your trades. Trade your plan

2. Keep records of your trading results.

3. Keep a positive attitude, no matter how much you lose.

4. Don't take the market home.

5. Successful traders buy into bad news and sell into good news.

6. Successful traders are not afraid to buy high and sell low.

7. Successful traders have a well-scheduled planned time for studying the markets.

8. Successful traders isolate themselves from the opinions of others.

9. Continually strive for patience, perseverance, determination, and rational action.

10. Limit your losses - use stops ! ( mental imo )

11. Never Cancel a stop loss order after you have placed it!

12. Place the stop at the time you make your trade.

13. Never get into the market because you are anxious because of waiting.

14. Avoid getting in or out of the market too often.

15. Losses make the trader studious - not profits. Take advantage of every loss to improve your knowledge

of market action.

16. The most difficult task in speculation is not prediction but self - control. Successful trading is

difficult and frustrating. You are the most important element in the equation for success.

17. Always discipline yourself by following a pre - determined set of rules.

18. Remember that a bear market will give back in one month what a bull market has taken a three months to

build.

19. Don't ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves

against you 20% from your peak profit point.

20. You must have a program, you must know your program, and you must follow your program.

21. Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity,

which more than likely will be profitable.

22. Split your profits right down the middle and never risk more then 50% of them again in the market.

23. The key to successful trading is knowing yourself and your stress point.

24. The difference between winners and losers isn't so much native ability as it is discipline excercised

in avoiding mistakes.

25. In trading as in fencing there are the quick and the dead.

26. Speech may be silver but silence is golden. Traders with the golden touch do not talk about their

success.

27. Dream big dreams and think tall. Very few people set goals too high. A man becomes what he thinks about

all day long.

28. Accept failure as a step towards victory.

29. Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker! Don't let

ego and greed inhibit clear thinking and hard work.

30. One cannot do anything about yesterday. When one door closes, another door opens. The greater

opportunity always lies through the open door.

31. The deepest secret for the trader is to subordinate his will to the will of the market. The market is

truth as it reflects all forces that bear upon it. As long as he recognizes this he is safe. When he

ignores this, he is lost and doomed.

32. It's much easier to put on a trade than to take it off.

33. If a market doesn't do what you think it should do, get out.

34. Beware of large positions that can control your emotions. Don't be overly aggressive with the market.

Treat it gently by allowing your equity to grow steadily rather than in bursts.

35. Never add to a losing position.

36. Beware of trying to pick tops or bottoms.

37. You must believe in yourself and your judgment if you expect to make a living at this game.

38. In a narrow market there is no sense in trying to anticipate what the next big movement is going to be

- up or down.

39. A loss never bothers me after i take it. I forget it overnight. But being wrong and not taking the loss

- that is what does the damage to the pocket book and to the soul.

40. Never volunteer advice and never brag of winnings.

41. Of all speculative blunders, there are few greater than selling what shows a profit and keeping what

shows a loss.

42. Standing aside is a position.

43. It is better to be more interested in the market's reaction to new information that in the piece of

news itself.

44. If you don't know who you are , the markets are an expensive place to find out.

45. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of

what will happen in the future. Mark that word - Nobody! Thus the successful trader does not base moves on

what supposedly will happen but reacts instead to what does happen.

46. Except in unusual circumstances, get in the habit of taking your profit too soon. Don't torment

yourself if a trade continues winning without you. Chances are it won't continue long. If it does, console

yourself by thinking of all the times when liquidating early reserved the gains that you would have

otherwise lost.

47. When the ship starts to sink, don't pray - jump.

48. Lose your opinion - not your money.

49. Assimilate into your very bones a set of trading rules that works for you.
=============================================================================

karennma
6,387 posts
msg #56915
Ignore karennma
11/21/2007 4:14:11 PM

"3. Keep a positive attitude, no matter how much you lose."

************

As long as you don't lose everything.



nikoschopen
2,824 posts
msg #56926
Ignore nikoschopen
11/21/2007 10:04:08 PM

Thanks for sharing. I dunno about others, but I'm more convinced now than ever that it's not the filter but the human psychology and how our trading is directly governed by its process that will push me one step closer to my financial freedom.

nikoschopen
2,824 posts
msg #56938
Ignore nikoschopen
11/22/2007 2:22:25 AM

The 3 Phases of Trading as a Business


Note: This is ripped from one of the ET threads

As new traders, we must understand that the road ahead of us will not be easy, nor will it be a quick journey. The path that lies ahead is filled with daily challenges that will test our skills, both technical and mental.
In fact, most traders fail to progress past the start-up phase. They fail to learn:
To take a loss
To be wrong
That, to succeed, they must take the time required to learn!

The one constant fact that all successful traders, including Borselinno, Fisher, Jones and more, all agree on is this: It takes time to become a successful trader. Borselinno says at least a year; Fisher says maybe 2 years, but they all say this business has nothing to do with instant success. Quite the contrary: Most successful traders say that Survival is the first key to success.

Typical Progressions of the Start-Up Phase of a Trading Business

We:
Are lured by money
Perceive a low barrier to entry
Are influenced by “Peer Pressure” news hype
See that a friend did this and that
Read a few books
Go to a few seminars and get all that is freely available online
Find some speculative capital
Trade
Win
Lose
Lose
Find we need the right tools but think we can’t afford them
Think, “I need to try something more difficult.” even though we don’t understand what we just tried nor do we have the tools or the education
Lose more
Understand that we truly do need to work on “planning” and a way to shift our emotions from an adversary with respect to our goals to a powerful force that guides our actions
Finally, understand that it is okay to take a loss (In fact, we discover that this was the first lesson we needed to learn to survive!)

Survival is actually the goal for the start-up phase. So, then, we graduate to the Growth Phase.

Typical Progressions of the Growth Phase of a Trading Business

We:
Make a commitment to getting education and the proper equipment
Actually learn something
Plan
Trade with better results
Decide to make it complicated for some stupid, unknown alien reason
Lose patience
Lose
Simplify again, refining
Now understand the importance of patience in all of this
Take more risk
Are slaughtered by the market(s) even worse than ever before
Now have trouble pulling the trigger when the set-ups are very clear
Begin to understand the importance of discipline
Discover the mechanics of trading
Learn the life cycle of a trade
Commit our capital as planned, using strict money management
Get better
Start actually accepting responsibility for our own actions

Stop searching and start focusing (That is the key to graduating to the Maturity Level.)

Typical Progressions of the Maturity Phase of a Trading Business

We:
Are patient in our endeavors
Are disciplined enough to trade our plan
Understand leverage
Practice strict money management
Take less and less risk, preferring to use size on stronger signals
Learn how to handle huge dollar profits but keep our perspective (return on investment versus time to money)
Find out how to handle huge dollar losses but keep our perspective (return on investment versus time to money)
Truly understand the life cycle of a trade and can plan accordingly
Commit to a lifetime of education and learning
Now trade on auto-pilot, choosing to participate when the best risk:reward ratios exist

Make our main priority to trade our plan

jcollins01
29 posts
msg #59320
Ignore jcollins01
1/27/2008 4:58:24 PM

Very nice collection thanks for sharing

betyerbottomdollar
169 posts
msg #59322
Ignore betyerbottomdollar
1/28/2008 11:04:44 AM

Geezuz...does anyone actually trade according to every one of those rules? There are so many that, added up, you couldn't make any kind of trade without violating another rule! And what about the one I see all the time that says, "Don't listen to what other people tell you"?

Here is what I want to see...I want the top three most important rules for trading stocks, period. If a trader was to throw all the rules up in the air, which three would have the most weight and hit the ground first?

chetron
2,817 posts
msg #59332
Ignore chetron
1/28/2008 7:47:51 PM

1) buy low, sell high

betyerbottomdollar
169 posts
msg #59376
Ignore betyerbottomdollar
1/29/2008 5:23:35 PM

Yeah, actually that is my number one. You can't make money if you don't buy low and sell high.

StockFetcher Forums · General Discussion · Notes I have been collecting<< 1 2 >>Post Follow-up

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