- The trend is your friend, don’t fight the tape.
- Let profits run, take losses quickly.
- If you buy for a reason, and that reason if discounted or is no longer valid, then sell!
- If the values don’t make sense, then don’t participate. (2+2=4)
- The cheap get cheaper, the dear get dearer.
- Don’t fight the Fed (less valid than #1).
- Every indicator eventually bites the dust.
- Adapt to change.
- Don’t let your opinion of what should happen, bias your trading strategy.
- Don’t blame your mistakes on the market.
- Don’t play all the time.
- The market is not efficient but is still tough to beat.
- You’ll never know all the answers.
- If you can’t sleep at night, reduce your positions or get out.
- Don’t put too much faith in experts.
- Don’t focus too much on short-term information flows.
- Beware “New Era” thinking, i.e. it’s different this time because…
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