Hey Awsome people , how are you doing all !
and hope your trading is going well , Last few days ago i shared "The top Trading Rules . Part 1 " and now i'm going to share the part two .
Lets Enjoy guys .
PAUL TUDOR JONES
- Never play macho with the market and don’t over trade.
- If I have positions going against me, I get out; if they are going for me, I keep them
- Decrease your trading volume when you are trading poorly; increase your volume when you are trading well.
- Never trade in situations you don’t have control. I don’t risk significant amounts of money in front of key reports, since that is gambling, not trading.
- If you have a losing position that is making you uncomfortable, get out. Because you can always get back in.
- Don’t be too concerned about where you got into a position. The only relevant question is whether you are bullish or bearish on the position that day.
- The most important rule of trading is to play great defense, not offense.
- Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.
- Everything gets destroyed a hundred times faster than it is built up. It takes one day to tear down something that might have taken ten years to build.
- Markets move sharply when they move. If there is a sudden range expansion in a market that has been trading narrowly, human nature is to try to fade that price move. When you get a range expansion, the market is sending you a very loud, clear signal that the market is getting ready to move in the direction of that expansion.
- You always want to be with whatever the predominant trend is.
- My metric for everything I look at is the 200-day moving average of closing prices. I’ve seen too many things go to zero, stocks and commodities. The whole trick in investing is: “How do I keep from losing everything?” If you use the 200-day moving average rule, then you get out. You play defense, and you get out.
- At the end of the day, your job is to buy what goes up and to sell what goes down so really who gives a damn about PE’s?
