Trade rules by Jack Schwager

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75. Cool mood of the players relative to the market with a strong trend can be more reliable indicator of the likely continuation of price movement than a strong bullish or bearish as an indicator of the spread. In other words, extreme mood can often occur in the absence of long-term peaks and valleys, but the long-term tops and bottoms rarely occur in the absence of extreme sentiments (current or former).

76. The fact that some of the trading signal is triggered, a signal is more reliable than the original signal. Open position against the original signal, and use the maximum (minimum), which occurred before the appearance of a false alarm, as the level of the stop. Some examples of these are shown in figures nesrabotavshih rules 56-58, 62, 64 and 69.

77. The inability of the market to follow the great news bullish or bearish nature (for example, the main reports USDA) is often a harbinger of an impending reversal. Pay particular attention to such developments, if you have open positions.

Analysis and verification

78. View your daily schedule, especially if you are very busy.

79. Periodically review the long-term charts (for example, every four weeks).

80. Religiously follow the rules diary trader, accompanied by his graphs for each transaction undertaken and writing the following things: the causes of the transaction and is expected to stop and the target (if any), the price at which the position was closed, observations and lessons learned (error, correct decisions or noteworthy model) net profit / loss. It is important to list dedicated to the transaction has been completed at the time of opening the position, then the reasons for the transaction will accurately reflect your views at the time, and not its reconstruction.

81. Keep a collection of graphic formations, making it all noticed market models that seem interesting. This will help you check your prediction as to their outcome or to draw attention to the fact, as the figure finally resolved (if you did not know what to expect from this model). Be sure to keep an eye on each graph to the end to see the final outcome. Over time, this process can improve your skills in interpreting graphs, providing some statistical evidence of the predictive reliability of various graphic shapes (when they are detected in real-time.)

82. Check and update the trade rules, and a collection of diary trader graphic figures on a regular basis (for example, a full update in three months). Of course, the test can be carried out more frequently if you think that it would be useful.


Jack Schwager manages the fund with a capital of more than $ 75 million. He is director of the analytical department at Prudential Securities, Ink., Managing director of Wizard Trading. In addition, in the area of futures trading on - authoritative consultant with 22 years of experience in analyzing markets. People like him are usually called "financial gurus". It is published in the leading U.S. financial publications, lectures, and publishes books. As one of his colleagues: "Jack Schwager in this century has had on the futures trading more influence than any other writer."