Some will recognize many of these rules. Some may recognize
who/where they come from. You may want to guess. All are worth reflecting on.
What is interesting is how they relate. 6park.com
  6park.com
This one is first and foremost a trader, so
these are rules for traders, but also offer insight to investors. 6park.com
  6park.com
<!--[if !supportLists]-->1.   <!--[endif]-->NEVER, EVER, EVER ADD
TO A LOSING POSITION: EVER!: Adding to a losing position eventually leads to
ruin, remembering Enron, Long Term Capital Management, Nick Leeson and myriad
others. 6park.com
  6park.com
<!--[if !supportLists]-->2.   <!--[endif]-->TRADE LIKE A
MERCENARY SOLDIER: As traders/investors we are to fight on the winning side of
the trade, not on the side of the trade we may believe to be economically
correct. We are pragmatists first, foremost and always. 6park.com
  6park.com
<!--[if !supportLists]-->3.   <!--[endif]-->MENTAL CAPITAL TRUMPS
REAL CAPITAL: Capital comes in two forms... mental and real... and defending
losing positions diminishes one’s finite and measurable real capital and one’s
infinite and immeasurable mental capital accordingly and always. 6park.com
  6park.com
<!--[if !supportLists]-->4.   <!--[endif]-->WE ARE NOT IN THE
BUSINESS OF BUYING LOW AND SELLING HIGH: We are in the business of buying high
and selling higher, or of selling low and buying lower. Strength begets
strength; weakness more weakness. 6park.com
  6park.com
<!--[if !supportLists]-->5.   <!--[endif]-->IN BULL MARKETS ONE
MUST TRY ALWAYS TO BE LONG OR NEUTRAL: The corollary, obviously, is that in
bear markets one must try always to be short or neutral. There are exceptions,
but they are very, very rare. 6park.com
  6park.com
<!--[if !supportLists]-->6.   <!--[endif]-->"MARKETS CAN
REMAIN ILLOGICAL FAR LONGER THAN YOU OR I CAN REMAIN SOLVENT:" So said
Lord Keynes many years ago and he was... and is... right, for illogic does
often reign, despite what the academics would have us believe. 6park.com
<!--[if !supportLists]-->7.   <!--[endif]-->BUY THAT WHICH SHOWS
THE GREATEST STRENGTH; SELL THAT WHICH SHOWS THE GREATEST WEAKNESS:
Metaphorically, the wettest paper sacks break most easily and the strongest
winds carry ships the farthest, fastest. 6park.com
  6park.com
<!--[if !supportLists]-->8.   <!--[endif]-->THINK LIKE A
FUNDAMENTALIST; TRADE LIKE A TECHNICIAN: Be bullish... or bearish... only when
the technicals and the fundamentals, as you understand them, run in tandem. 6park.com
  6park.com
<!--[if !supportLists]-->9.   <!--[endif]-->TRADING RUNS IN
CYCLES; SOME GOOD, MOST BAD: In the “Good Times” even one’s errors are
profitable; in the inevitable “Bad Times” even the most well researched trade
shall go awry. This is the nature of trading; accept it and move on. 6park.com
  6park.com
<!--[if !supportLists]-->10.<!--[endif]-->KEEP YOUR SYSTEMS
SIMPLE: Complication breeds confusion; simplicity breeds elegance and
profitability. 6park.com
  6park.com
<!--[if !supportLists]-->11.<!--[endif]-->UNDERSTANDING MASS
PSYCHOLOGY IS ALMOST ALWAYS MORE IMPORTANT THAN UNDERSTANDING ECONOMICS: Or
more simply put, "When they’re cryin’ you should be buyin’ and when
they’re yellin’ you should be sellin’!" 6park.com
  6park.com
<!--[if !supportLists]-->12.<!--[endif]-->REMEMBER, THERE IS
NEVER JUST ONE COCKROACH: The lesson of bad news is that more shall follow...
usually hard upon and always with worsening impact. 6park.com
  6park.com
<!--[if !supportLists]-->13.<!--[endif]-->BE PATIENT WITH
WINNING TRADES; BE ENORMOUSLY IMPATIENT WITH LOSERS: Need we really say more? 6park.com
  6park.com
<!--[if !supportLists]-->14.<!--[endif]-->DO MORE OF THAT WHICH
IS WORKING AND LESS OF THAT WHICH IS NOT: This works well in life as well as
trading. If there is a “secret” to trading... and to life... this is it. 6park.com
  6park.com
<!--[if !supportLists]-->15.<!--[endif]-->CLEAN UP AFTER
YOURSELF: Need we really say more? Errors only get worse. 6park.com
<!--[if !supportLists]-->16.<!--[endif]-->SOMEONE’S ALWAYS GOT
A BIGGER JUNK YARD DOG: No matter how much “work” we do on a trade, someone
knows more and is more prepared than are we... and has more capital! 6park.com
  6park.com
<!--[if !supportLists]-->17.<!--[endif]-->PAY ATTENTION: The
market sends signals more often than not missed and/or disregarded... so pay
attention! 6park.com
  6park.com
<!--[if !supportLists]-->18.<!--[endif]-->WHEN THE FACTS
CHANGE, CHANGE! Lord Keynes... again... once said that “ When the facts change,
I change; what do you do, Sir?” When the technicals or the fundamentals of a
position change, change your position, or at least reduced your exposure and
perhaps exit entirely. 6park.com
  6park.com
<!--[if !supportLists]-->19.<!--[endif]-->ALL RULES ARE MEANT
TO BE BROKEN: But they are to be broken only rarely and true genius comes with
knowing when, where and why!