Contents
Acknowledgments ix
Introduction xi
PART I Getting in the Game
RULE #1 Know Your Game 3
RULE #2 Have a Trading Plan 9
RULE #3 Think in Terms of Probabilities 15
RULE #4 Know Your Time Frame 23
PART II Cutting Losses
RULE #5 Define Your Risk 31
RULE #6 Always Place a Protective Stop 37
RULE #7 Your First Loss Is Your Best Loss 43
RULE #8 Never Add to a Loser 47
RULE #9 Don’t Overtrade 51
PART III Letting Profits Run
RULE #10 Keep Good Records and Review Them 59
RULE #11 Add to Your Winners 65
RULE #12 Use Multiple Time Frames 71
RULE #13 Know Your Profit Objective 77
RULE #14 Don’t Second-Guess Your Winners 83
Part IV Trader Maxims
RULE #15 Know the Limits of Your Analysis 91
RULE #16 Trade with the Trend 97
RULE #17 Use Effective Money Management 105
RULE #18 Know Your Ratios 111
RULE #19 Know When to Take a Break 117
RULE #20 Don’t Trade the News 123
RULE #21 Don’t Take Tips 129
RULE #22 Withdraw Equity Regularly 133
RULE #23 Be a Contrarian 137
RULE #24 All Markets Are Bearish 143
RULE #25 Buy/Sell 50% Retracements 149
RULE #26 The Only Indicator You Need 155
RULE #27 Study Winning Traders 161
RULE #28 Be a Student of Yourself 167
Conclusion 173
Recommended Reading 179
About the Author 183
Index 185