文档介绍：LXXVI
76 Rules of
Millionaire
Traders
by Merrill J. Oster, Chairman
modity News
essful traders discipline themselves to follow a set of rules. Some of the
rules in this list have been used by the masters – including Charles Dow who in
1884 began discussing the Dow theory of price trend analysis. Others have
been used by modity trading masters like Rich Dennis in the late 1990’s.
These rules transcend stocks modities and they cover the three major
areas of concern to a trader; price forecasting, trading tactics and money
management. They cover both fundamental and technical considerations. These
rules represent the best wisdom of dozens of millionaire
traders gleaned from interviews with the pros themselves
or through research into the history of "trading legends."
© 2002, OsterDowJones
Cut Losses Short;
Let Profits Run
Since this is the “golden rule,”
1dump an 8-12% loser.
Bernard Baruch, a famous investor said, “If an investor is right three or four
times out of ten, he should do well if he has the sense to cut his losses
quickly.” One of the oldest rules in stock trading is to cut losses short and let
profits run. Protect your capital by knowing how much you’re willing to lose
on any given stock. The smaller the loss you are willing to accept, the more
likely you are to get "whip-sawed" in short-term market declines. But, it is
better to get “whip-sawed” than to get “wiped out.” It is too late to set your
investment parameters after you have already lost 15% or 20% of your stock’s
value. At that point emotion takes over, and fear drives your
investment decision-making process. Fear and greed are the
two big enemies of the stock or futures traders.
© 2002, OsterDowJones
Buy High, Sell Higher
Buying into market strength is
counter-intuitive to the “buy low,
2sell high” market.
One favored trading strategy is to buy a stock modity after it has
broken out on the upside of a resistance or “co