Go back to Part 2: Trading System & Money ManagementTECHNICAL TRADING SYSTEM16. Keep your technical systems simple.Complicated systems breed confusion; simplicity breeds elegance.17. Establish initial positions on strength in bull markets and on weakness in bear markets.The first "addition" should also be added on strength as the market shows the trend to be working. Henceforth, subsequent additions are to be added on retracements.18. Respect and embrace the very normal 50-62% retracements that take prices back to major trends.If a trade is...
Saturday, October 25, 2008
Saturday, October 18, 2008
GARTMAN’S RULES OF TRADING – Part 2: Trading System & Money Management
Go back to Part 1: Trading PsychologyTRADING SYSTEM & MONEY MANAGEMENT7. Never, under any circumstance add to a losing position.... ever!Nothing more need be said; to do otherwise will eventually and absolutely lead to ruin!8. Trade like a mercenary guerrilla.We must fight on the winning side and be willing to change sides readily when one side has gained the upper hand.9. The objective is not to buy low and sell high, but to buy high and to sell higher.We can never know what price is "low." Nor can we know what price is "high."Always remember...
Saturday, October 11, 2008
GARTMAN’S RULES OF TRADING – Part 1: Trading Psychology
22 Trading Rules by Dennis Gartman, Editor/Publisher of The Gartman Letter:(I was just trying to group the rules based on their topics)TRADING PSYCHOLOGY1. Capital comes in two varieties: Mental and that which is in your pocket or account.Of the two types of capital, the mental is the more important and expensive of the two. Holding to losing positions costs measurable sums of actual capital, but it costs immeasurable sums of mental capital.2. "Markets can remain illogical longer than you or I can remain solvent", according to our good friend,...
