Stock Trading Rules

From: Mark Crisp

The Stress Free Momentum Stock Trader

http://www.stressfreetrading.com   (c)   November 2003

Dear investor

This is a significant step on your road to financial independence. For investing a very small fee, you will receive a set of winning rules that will help you learn how to buy and sell shares, how to invest and how to make money on the stock market. Every investor, whether a novice or very experienced, will be able to win on the stock market with these rules. The aim of my Top 10 Rules is to reduce the risk of losing money and to maximize profits when buying and selling shares.

I am not a stockbroker or an investment advisor or CEO of a big company.  I am just a personal investor, who after 20 years of hard work, investing, reading many investment books, trial and error and making a few mistakes, have produced the Top 10 Rules that everyone who wants to make a lot of good, honest money should follow. 

I have finally achieved my financial independence and am now enjoying the fruits of  my investing. If I had these 10 rules earlier in my life I would have been financially independent many years ago. You can use these rules to make yourself financially secure now !

I started trading stocks back in 1990 on the U.K Stock market. Since then I have also traded shares on the United States Stock market. It is easy to buy and sell shares worldwide now thanks to internet stock broking. 

I have done a lot of research by reading investment books, attending investment seminars and subscribing to investment magazines. Over the years I have collected a lot of information and have developed these winning rules that I always refer to before I make any investment in the stock market whether it be in U.S.A.or overseas. By following these Top 10 Rules I have been able to trade in shares successfully..........VERY SUCCESSFULLY !!! 

My Top 10 Rules are not a "Get Rich Quick" scheme. They are a set of guiding principles that will help you learn how to save, invest, prosper and to achieve your financial goals. I can not guarantee that they will make you a millionaire overnight but they will certainly help you to get started. Over time you will quickly see the benefits of these rules and your financial prosperity will grow..........SIGNIFICANTLY !!! 

Some of these rules are incredibly simple and obvious but until they are spelled out in black and white for you to read, absorb and to follow you probably would never have followed them !!!

The principles used in my Top 10 Rules apply anywhere in the world for anyone that is eager to achieve financial independence and that wants to make good, honest money..........a lot of good, honest money !!!

So if you want to win understand these rules.

1) you cannot predict the future. Stop believing it and stop wasting your time trying to do it. No-one ever has nor ever will be able to "predict" what is going to happen in the future. Runaway markets tend to keep running away. Cheap stocks seem to get much cheaper and expensive stocks more often than not, get much more expensive. do not even bother trying to justify a market simply let it do what it wants to.

2) The big money is made from position sizing. You really must stop chasing a holy Grail and spend time on different position sizing rules. This is the one "secret" that separates a professional from the man in the street.

3) Price is all that matters. Stocks do not follow fundamentals. It's all about "perceptions." Why can two identical stocks have completely different fortunes in the market?

4) Stop thinking like an institution. The big money management funds are not interested in outperforming the stock market. as strange as it seems. They are interested in managing money. So when they tell you to "diversify", only invest in blue Chip stocks with a solid past earnings, great management teams, solid this and that.... treat it for the non-sense it is. Unless you want poor returns.

5) 99% of technical analysis is junk. Whole companies have been set up to feed you B*S in the form of technical analysis. Throw it away and get down to basics.

6) Question everything and everyone. Even me. Never blindly believe anything you read or hear about. Be careful about what you read and even more careful about what you believe in. after all an opinion is only some-ones belief.

7) If you have to ask you shouldn't be in. I can't believe people actually ask other people whether they should hold or sell a stock position they are in. Surely before you enter you have your exits all in place. I'll guarantee if you are asking this question you are not making money.

8) I am in the stock market to make money not to win a puzzle. No-one can beat the market. Make a fortune in a bull market play defensive in a bear market. Returns of 300%+ should be easily attainable in the right conditions but do not give it back when the market conditions change.

9) Some people are just not cut out to trade the stock market. If you attach too much importance to your trading account i.e you are trading "scared money" you will never have the conviction to follow your rules. If you are not having success stop trading. either learn why you are failing or give your money to someone who is.

10) Trading the stock market isn't everything. It's only money. there are much more important things in life and you'd better not forget it.

   Thank you

  Mark crisp

 http://www.stressfreetrading.com  (c)