Author: Linda Raschke
Linda discusses five choice trading patterns she uses. Based on a logical set of market principles, these five patterns work equally well in equity and commodity markets. Understanding these enduring market setups provides you with a solid foundation for trading technically. They simplify analysis for the beginner and give the aggressive trader added confidence. Linda has used these patterns as the core of her intermediate-term analysis but they work well on any timeframe.
Time Tested Classic Trading Rules
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Time Tested Classic Trading Rules
for the Modern Trader to Live By
This is a list of classic trading rules that was given to me while on the trading floor in 1984. A senior trader collected these rules from classic trading literature throughout the twentieth century. They obviously withstand the age-old test of time.
I’m sure most everybody knows these truisms in their hearts, but this list is nicely edited and makes a good read.
- Plan your trades. Trade your plan.
- Keep records of your trading results.
- Keep a positive attitude, no matter how much you lose.
- Don’t take the market home.
- Continually set higher trading goals.
- Buy into bad news and sell into good news.
- Are not afraid to buy high and sell low.
- Have a well-scheduled planned time for studying the markets.
- Isolate themselves from the opinions of others.
- Continually strive for patience, perseverance, determination, and rational action.
- Limit your losses – use stops!
- Never cancel a stop loss order after you have placed it!
- Place the stop at the time you make your trade.
- Never get into the market because you are anxious because of waiting.
- Avoid getting in or out of the market too often.
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