General Trade rules
Set-ups vary from one trade to the next. Different circumstances leading up to a trade determine whether to buy or sell or short. Regardless of the set-up there are entry and exit rules that would generally apply.These are:
1. Be aware of and follow a trend in proportion time wise to your trade. If you buy and are buying based on a 1 minute bar be sure the set up exists on the 1 minute chart.
2. Don't buy overbought markets, buy pullbacks or dips or oversold markets. Don’t buy a gap up until after a dip.
3. Don't sell or short oversold markets, sell bounces or short overbought markets. Don’t short a gap down until after a bounce.
4. Don't enter into a trade once it is apparent everyone is a buyer or everyone is a seller, except to fade it.
5. Watch volume to determine trend exhaustion.
6. Don't anticipate bottoms or tops, except to take profits.
7. When your opinion of how the market should react is different than how it is reacting or acting, change your opinion or get out or both.
8. Being in a hurry gets you nowhere. Being fast is an asset best mixed with patience.
9. Don't try to be perfect, get everything you can out of a trade but the number of perfect trades you will get will cost you more from missed opportunities than you will make.
10. Relying on hope is for losers, don't be a loser.
