Trading Rules

Around a decade before, I had read a book named Stock Market Trading Rules by William F. Eng. The book looked simple, but it contains valuable insight into the managing the show in the stock markets. The book has Fifty Golden Rules, and at that time, I was unable to understand the true meaning an import of those classical and time tested rules. Now, almost after a decade, I understand the true significance of those classical rules.

I vividly remember some of the rules:

#Don't Overtrade
#Trade with the Trend
#Withdraw a Portion of Your Profits
#Take Big Profits and Small Losses
#Buy the Rumor, Sell the Fact
#Preserve Your Capital
#Big Movements Take Time to Develop
#Look for Reasonable Profits
#When Time is Up, Markets Must Reverse
#Control What You Can, Manage What You Cannot

These are just ten rules out of the fifty rules given in the book. It took me time (months and years) to understand the real reasons for these and other rules.