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Found this list of general rules for trading systems from Turtle Trader. Many are just plain common sense, but you’d be surprised at home many investors overlook them or don’t take them seriously.

Understand why you are in the markets. Gambling thrill or to make money?
Use an approach and don’t deviate from it.
Use money management at all times.
Establish a trading plan before the markets open.
Have a detailed plan for each trade.
Have entry and exit points and understand risk reward rations.
Learn to accept many small losses.
Trade markets from the short side.
Standing aside from a position is a position.
Have a strong relationship with your broker.
Speculation is a business. Develop a business plan.
Survive to hang around for the big moves.
Don’t blame the market for your losses. You are the sole reason for losses.
Write out a trading plan for all potential situations you may face.
Do not look at quotes during the day.
Do not concentrate on break-even levels when you are losing.
Break-even levels have no bearing on the future success of a position.
Don’t liquidate a winner to keep a loser.
Develop and maintain an exit plan. Follow this plan with rigid discipline.
Greed kills.
Never add to a losing position. A losing position means you are wrong.
Big movements take time to develop. Stay patient.
Nothing new ever occurs in the Markets.
Don’t try to predetermine your profits.
The key to wealth in trading is simplicity. Avoid techniques you don’t understand.
Don’t be overly curious about the rationale behind a move.
Trade your money not the markets.

This entry was posted on Wednesday, November 30th, 2005 at 11:12 pm and is filed under Market averages and indices, Stock tickers and quotes, Charts, Stock screening applications. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.