Helpful trading rules

1. Know your information source. Brokers and many Financial Planners are sales people not traders and get their information indirectly though their organization. And you should question advice from your neighbor or fiend of a friend unless they’re in the business.
2. Transform information into an idea. If Georgia Pacific has asbestos liability, who else does? How does Microsoft affect other technology companies? This is where R&D and experience count.
3. Know how much risk you're taking. If you bet the ranch you can lose the ranch. This is key you must understand risk! In best-case scenario your risk reward ratio is limited risk and unlimited reward. The long-term investor outlook is if you buy a stock trading at 20 dollars. Risk is 20 dollars but the potential reward theoretically is unlimited. See VHF article on trading risk.
4. Always have a trading strategy before you trade. Always look ahead, have a plan.
   Always have an exit strategy. Solution to “Murphy’s Law”.
   Have courage. Without courage you have nothing. Have the courage to pull the trigger and follow your strategy with flawless execution.
5. Control your emotions. Insecurity makes you aware and open-minded. Feel comfortable about not knowing. When in this mode the tendency is to hurry-up or panic. Slowdown watch, observe and learn knowing you have an exit plan in place. The name of the game is execution, execution, execution.