50 Rules Millionaires Use to Trade Stocks

50 Rules Millionaires Use to Trade Stock  Cut losses short;  Let profits run.  Sell an 8-12% loser.  This is the “golden rule” of investing

50 Rules Millionaires Use to Trade Stock  Create a trading plan.  Test your plan.  Then, stick to it.

50 Rules Millionaires Use to Trade Stock  The trend is your friend.  Buy in an up-trending market.  Use the 100-day moving average as your guide

50 Rules Millionaires Use to Trade Stock  Good management creates value.  Buy companies with good leadership and management  Scout out their track record.

50 Rules Millionaires Use to Trade Stock  Invest in No. 1.  Buy companies that dominate their sector.  Why mess with second best?  Your money is at stake.

50 Rules Millionaires Use to Trade Stock  Money flows to new ideas.  Buy companies that have a track record for new innovations.  Understand the story and make sure you like the ideas driving the company.

50 Rules Millionaires Use to Trade Stock  Buy companies with 20% revenue growth.  Investment life is too short to wait for sleepers that can’t grow 20% or more per year

50 Rules Millionaires Use to Trade Stock  Current earnings that reduce your risk.  Buy companies with earnings growth of 20% a year or more.

50 Rules Millionaires Use to Trade Stock  Annual earnings are a huge clue.  Buy companies with annual earnings growth of 25 to 50%.

50 Rules Millionaires Use to Trade Stock  Sell a technical breakout.

50 Rules Millionaires Use to Trade Stock  Sell double or triple tops.  They are powerful indicators

50 Rules Millionaires Use to Trade Stock  Buy stocks that go against bear trends.  Buy stocks that rally even when the market is falling.  That’s usually a clue to a significant shift in attitude toward that company

50 Rules Millionaires Use to Trade Stock  Make the market come to you.  Enter with buy stops $1 over the market

50 Rules Millionaires Use to Trade Stock  Don’t be a bottom picker.  But, if you occasionally break this rule, use close stop loss orders

50 Rules Millionaires Use to Trade Stock  Safe harbor your profits.  Don’t expose all of your profits to the market.  Buy real estate or some liquid asset with part of your profit.

50 Rules Millionaires Use to Trade Stock  Add to winners, not your losers.  Double down is double trouble unless you have very deep pockets.

50 Rules Millionaires Use to Trade Stock  Don’t over-trade.  Know when to step back and let the market do your work

50 Rules Millionaires Use to Trade Stock  Take a few big risks.  Put 5% of your risk capital on wild possibilities.  But don’t “bet the farm” on those long shots.

50 Rules Millionaires Use to Trade Stock  Eat from a “Silver Spoon”.  It is technical formation which throws off good buy signals.

50 Rules Millionaires Use to Trade Stock  Know yourself.  Know your ability and propensity for risk  Trade within those limits.

50 Rules Millionaires Use to Trade Stock  Learn to accept losses.  Don’t cry over spilled milk  Forget yesterday’s losers.  Every day is a new beginning, a fresh start.

50 Rules Millionaires Use to Trade Stock  Don’t put all your eggs in one basket.  Own 25 stocks over 5 sectors  Spread your risk

50 Rules Millionaires Use to Trade Stock  Invest heavily in one or two winners.  Sounds conflicting to previous rule.  Sometimes rules are in conflict

50 Rules Millionaires Use to Trade Stock  Write covered calls.  They enhance your income.  Ask your broker to explain.  If he can’t, get a new one.

50 Rules Millionaires Use to Trade Stock  Take a trading break.  The more you trade, the more you need complete breaks to clear your mind..

50 Rules Millionaires Use to Trade Stock  Seek wise counsel. Then get a second opinion.

50 Rules Millionaires Use to Trade Stock  Stay liquid. Avoid big positions in low volume markets.

50 Rules Millionaires Use to Trade Stock  Buy the rumor, sell the fact.  By the time an idea hits the major media, chances are, the market has already discounted the information.

50 Rules Millionaires Use to Trade Stock  Keep one eye on gold.  Gold price measures the world’s fear factor.  The higher the price, the higher the fear.

50 Rules Millionaires Use to Trade Stock  Keep positive company.  Positive people impact your attitude and attitude affects your confidence.

50 Rules Millionaires Use to Trade Stock  Don’t be a pig.  Bulls make a little, bears make a little, and pigs get slaughtered.

50 Rules Millionaires Use to Trade Stock  Go with your gut. Sometimes. Not all the time.

50 Rules Millionaires Use to Trade Stock  Buy what you believe in.  If you find a piece of software you like, check out the company behind it.  Watch what your own family and friends are buying.

50 Rules Millionaires Use to Trade Stock  Buy big, add small.  Build a trading pyramid by laying the base investment, then making incrementally smaller additions as the market moves in your favor.

50 Rules Millionaires Use to Trade Stock  Allow only the “fittest” stocks to survive.  Sell the weakest stocks in your portfolio, even if they are winners.

50 Rules Millionaires Use to Trade Stock  Hold a few favorites for years.  Try to avoid a short-term mindset on more than 20% of your portfolios

50 Rules Millionaires Use to Trade Stock  Know when to hold and when to fold.  When you don’t get what you expect, move on to another stock

50 Rules Millionaires Use to Trade Stock  Milk the media.  Get good ideas from smart people.  Some of the smartest people spill their best research in public

50 Rules Millionaires Use to Trade Stock  Use “trailing stops” to Jock in profits.  But use fixed stops to get out of losers.

50 Rules Millionaires Use to Trade Stock  Hire an expert.  Compare your investment results with “hired management”

50 Rules Millionaires Use to Trade Stock  Know the world’s power “waves.”  A few huge trends drive corporate growth

50 Rules Millionaires Use to Trade Stock  Watch the volume signals.  Volume surges are a warning of an impending change.

50 Rules Millionaires Use to Trade Stock  Invest gains in good causes.  The hope of our grandchildren rests in our investment in causes which create positive cultural change.

50 Rules Millionaires Use to Trade Stock  Avoid buying on margin.  High leverage is high risk  When you are wrong, margin buying magnifies your error.

50 Rules Millionaires Use to Trade Stock  Buy stocks institutions buy.  Read the financial data to see which institutions are adding your favorite stock to their portfolios.

50 Rules Millionaires Use to Trade Stock  Buy stocks in tight supply.  If you are considering two stocks, one with 20 million shares outstanding, the other with 100 million, choose the smaller one

50 Rules Millionaires Use to Trade Stock  Never let a winner become a loser.  Use stop loss orders to protect your gains.

50 Rules Millionaires Use to Trade Stock  Be patient.  Major price moves need time to run.

50 Rules Millionaires Use to Trade Stock  Buy stocks with 85% relative strength.  Relative strength measures a stock’s price performance with all other stocks.

50 Rules Millionaires Use to Trade Stock  Don’t be penny-wise and pound-foolish.  When you decide to enter the market, avoid the temptation to put a price order in to get it just a bit cheaper.