to be honest mitch somebody writes something similar to that every month , everybody wants to sit in their undies eating pizza and drinking beer for morning tea while making 500 k a year
I originally wrote my 15 points for a friend I was trying to teach, its pretty hard to teach somebody. Because everything is a decision that you yourself must make and live with.
Humility, a willingness to learn and admit errors ( and then not make those errors again) is key
We all get carried away and joke on here but cockiness is your worst enemy
Every disaster in the history of the asx can be avoided by following the first 3 rules. But every HC thread is littered with sad stories.
1) Set stops – never lose more than 15% in one trade
2) Never more than 5% of your capital in any one stock
3) 2% rule , never lose more than 2% of your capital in any one trade
4) THE TREND IS YOUR FRIEND
5) Follow the money and always take profits
6) Never trade on leverage or margin. If you are good you don’t need to borrow. If you don’t have the money you aren’t ready
7) The ”market” knows more than you do, NEVER buy into down trending stocks
8) Pyramid into winning trades
9) In every trade there is a smart person and a dumb one, which one are you?
10) NEVER believe management, believe the share price
11) Never buy into floats if you are an “average joe”, If its any good you wont get any, if it’s a dog you’ll get heaps
12) Brokers, financial planners and newsletter writers are salesmen. If they were any good they wouldn’t need you
13) The golden rule “He who has all the gold makes all the rules”. The people who “control” companies make decisions for their benefit only. You are just a pain in the backside
14) There are none so blind as those who do not wish to see
15) Chat sites are filled with insiders, be wary of any person who only posts on one or two stocks. I put them on ignore
