More of 55 Rules
<Follow these 55 Rules for Successful Investing:
Rule
#1: The market is always right.
Rule #2: Never buy a company run by a medical doctor. Doctors have a confidence that is great on the operating table but lousy in running a company. Buy companies run by salespeople.
Rule #3: When investing in Canadian resource companies, assume they are scams unless proven otherwise.
Rule #4: When a disaster occurs in an emerging market country, go to www.adr.com, find the company that has sold off the most, and buy it.
Rule #5: It is better not to make money than to lose it.
Rule #6: Always leave money on the table.
Rule #7: Never apologize for a profit.
Rule #8: After you sell a position, take the ticker off your screen.
Rule #9: If you make a certain type of trade and it works, make it again.
Rule #10:Do not hope, act.
Rule #11:Don't take sample opinions on a trade. You've done your research--live or die by it.
Rule #12:It is possible to make money going long a horrific company. I've successfully played dead cat bounces on Enron, Nortel, and Lucent.
Rule #13:Never try to catch a falling knife.
Rule #14:Have an investment goal and work toward it.
Rule #15:Use stock screens.
Those rules are just for starters. Being able to consistently make money in the markets requires discipline. That's why Chris offers you his complete list of 55 Rules for Successful Investing. Here are some more rules to help you make maximum gains:.
Rule
#16:A low P/E, high growth rate, insider buying, and no debt make any stock a
buy.
Rule #17:Draw trend lines. If a stock is in a downtrend, don't go long, and vice versa.
Rule #18:If you learn only one candlestick pattern, learn doji at the top of a trend.
Rule #19:Never give a stock an even bet. If you don't have an advantage, you will lose.
Rule #20:The market is a ravenous beast. It wants to take your life savings, chew them up, and laugh at you as you squirm in the dirt.
Rule #21:Contrarians are correct at turning points in the market, but wrong the rest of the time.
Rule #22:There are four types of traders: momentum, technical, fundamental, and insider.
Rule #23:Insider trading is the most lucrative, though illegal.
Rule #24:Momentum traders are correct most of the time but wrong during turning points.
Rule #25:It is against self-interest for technical traders to reveal their buys and sells.
Rule #26:Fundamental traders want the world to know they bought and sold.
Rule #27:When you make a successful trade, take 10 percent of the profits and buy something tangible, like a new hat. Reinvest the other 90 percent.
Rule #28:When you hit 100 percent gains on any equity trade, take your original stake off the table and forget about the remainder. Look it up in 10 years.
Rule #29:Economists are wrong.
Rule #30:The stock market is a leading indicator of the economy, not the other way around.
While the stock market offers you the chance for double...triple digit gains, these rules have been created to help protect the investment portfolio you've built up over the years. You'll find using these rules, minimizes your risk. Here's a few more rules to follow....
Rule #31There is no correlation between consumer confidence and the stock market.
Rule #32:Analysts from brokerage firms have bought and want you to buy.
Rule #33:Analysts from brokerage firms are selling and want you to buy.
Rule #34:Analysts from brokerage firms want you to sell so they can buy.
Rule #35:A Chinese firewall is as useful as a Chinese fire drill.
Rule #36:Watching CNBC has never made anyone any money.
Rule #37:The only sure way to become a millionaire in the markets is to start out a multimillionaire.
Rule #38:You are not Warren Buffett. You will never be Warren Buffett.
Rule #39:Successful options trading is like walking in front of a steamroller picking up dimes.
Rule #40:Eighty percent of options expire worthless. Or so they say.
Rule #41:Visiting companies and talking to CEOs makes me overly optimistic about those companies. The media is the same way.
Rule #42:Sometimes buying a ticker because it is a good ticker is a good idea.
Rule #43:I can be long a company while someone else is short, and we can both make money.
Rule #44:In the back pages of the Economist you will find the Big Mac index and GDP growth figures. Find the country with the most undervalued currency and the highest GDP growth. Buy it.
Rule #45:Monitoring insider buying is the best, easiest way to determine if a tech stock will go up in value.
Rule #46:Small-capitalization stocks always lead the way out of a bear market.
Rule #47:High volatility among small caps signals a top in the market.
Rule #48:Moves after a sideways market go up or down vertically as far as the sideways chart went horizontal.
Rule #49:Fifty-two-week highs are bullish.
Rule #50:High-volume up-days with no news are bullish.
Rule #51:The best times to buy and sell are at 10:30 A.M. and 3:45 P.M.
Rule #52:It always takes longer than you think for a reaction to occur.
Rule #53:Use 20 percent stop-losses on equities and 35 percent on options.
Rule #54:Trend lines work better than support and resistance.
Rule #55:The market is always right.
Print these rules out. Keep them near your computer. Use them often. If you'd like to learn more about how to successfully make gains in the market, why not sign up for one of Taipan Fianancial News' e-alerts including American Capitalist, Dynamic Market Alert, Fear and Greed or Market Report.