Trade rules by Jack Schwager


40. When you feel that you need to act - or open position, or leave it - proceed without delay.

41. Do not act against their own views on the long-term trend of the market. In other words, do not try to sit on two chairs.

42. Winning positions tend to have a positive reassessment from the start.

43. Timing for open positions and exit (for example, the timing of entry on the basis of compelling price formations immediate exit at the first sign of failure) can often save you from big losses, even if the position is a failure.

44. Intraday solutions are almost always wrong. Do not engage in intraday trade.

45. Be sure to check the market before the close on Friday. The situation is often seen more clearly in the week. In such cases, the best price input or output can usually be obtained before closing on Friday at the opening of the exchange than the following Monday. This rule is particularly important if you hold a significant position.

46. Dreams of the market may well be grounds for action (when the memory of them explicitly). Such dreams often come true, because they are your subconscious knowledge of the market, which breaks through the barriers established by conscious thought (eg, "How can I buy this if I could take a long position at $ 2000 less than last week?").

47. You can not be immune from bad trading habits. The best thing you can do - is to suppress them. Laziness and carelessness quickly lead to their return.

Pricing Models

48. If the market is setting new record highs and does not fall, there is a good chance that the price movement will continue. Sales at new highs - one of the biggest mistakes traders amateurs.

49. Narrow market consolidation near the top of the wide trading range - bull figure. A similar narrow consolidation near the bottom of the trading range - a bear figure.

50. Play breakout with a long narrow range of accommodation near the other end of the stop band.

51. Breakdowns of trading ranges that are held one to two weeks or longer - one of the most reliable technical indicators of impending trends.

52. General and particularly useful form of the above rule: flags or pennants, formed above the upper boundary (or below the lower bound) of the previous long and broad trading range, tend to be very reliable figures continue.

53. Trade in the direction of the large gaps.

54. Discontinuities arising posle long periods of consolidation, in particular, after odnogodvuh months of trading in a limited range, are often excellent signals (such figure works especially well in a bear market).

55. If the gap resulting from the breakdown of the level, do not fill in the first week, it should be regarded as a very reliable signal.

56. Make your way to new heights, or depressions, followed in the next week or two should break with the return within the range appears to be particularly robust figure, talking about the bull or bear trap.

57. If the market makes a breakdown of new peaks or troughs, and then returns to the previous trading range and generates a flag or pennant, consider that there was a trend reversal. You can open a position in the direction of turn, put a stop overseas flag or pennant.