Professional Documents
Culture Documents
for
TRIPLE-DIGIT
RETURNS
March 25, 2015
Rule #1
Concentrate - don't diversify
S Keeps things manageable
S Keeps you focused
S Allows you to be patient - the luxury
of integrity
Rule #2
Turn over your portfolio
S Forget about taxes
S Forget about getting the high
S Forget about your ego
Rule #3
Time your trades
S Time is money
S Use charts
S Learn how to identify a VCP set-up
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Rule #4
Manage the risk reward relationship
S Do the math
S Don't risk more than you expect to gain
S M o n ito r your gains regularly
No big losses
No forced trades
Rule #5
Trade directionally
S Only buy in the direction of your trade
S Never average down
S M ultiple tim efram e alignment
Rule #6
Build on success
S Trading is not an on/off business
S Let small wins finance larger risk
S Trade largest when trading your best and
smallest when trading your worst
Rule #7
Protect your breakeven point ASAP
v' 2-3x risk above average gain
^ Never let a good size gain turn into a loss
Order of Priorities
a. Cut your loss
b. Protect your line
c. Protect your profit
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Rule #8
Sell into strength
^ Get out before the stock can break
S It's better to sell early than late
S Selling half is a w in/w in solution
Rule #9
Conduct post-analysis regularly
S Results don't lie
S Look for com m onalities
S Improve your weaknesses
Rule #10
Avoid style drift
S Define your trading style
S Be willing to sacrifice
S Become a specialist