1. Never lose money!
2. See rule #1.
3. Know your stop before entering any position.
4. Don't fight the trend.
5. Never add to a losing position.
6. KISS: Keep It Simple Stupid.
7. Be patient with winning trades and impatient with losing trades.
8. Fix all mistakes immediately.
9. Never chase.
10. Be able to adapt and change sides. Play on the winning side and be willing to change sides quickly if the other side starts winning.
11. Cut losses quickly and let winners run.
12. We are not here to buy low and sell high. We are here to buy high and sell higher. We never know what price is low, nor can we know what price is high.
13. Bull markets, only be long or neutral. Bear market, only be short or neutral.
14. Markets can, and usually do, remain illogical far longer than you or I can remain solvent.
15. Buy markets that show the greatest strength and sell markets that show the greatest weakness. Gaps usually indicate violent new action. Respect the "GAP."
16. Trading like most things, runs in cycles, good and bad. Trade big and aggressive when good; trade small and less aggressively when bad.
17. Think like a fundamentalist, but trade like a technician. You must know the fundamentals driving a trade, but understand the market is technical.
18. Respect the reversal; especially "weekly " and "monthly" reversals. Reversal days after extended bull or bear runs signals final exhaustion of forces that drive the market.
19. Understanding mass psychology is always more important than understanding economics. Markets are driven by people.
20. Bear markets are more violent than bull markets. "Bulls take the stairs, Bears take the window."
21. Do more of that which is working and less of that which is not. New highs- buy. New lows- sell.
22. Amateurs open markets. Professionals close them.
23. All rules are meant to be broken. Winners know when.
24. Remove emotion from your trading - Trade Like A Machine.