50 Rules Millionaires Use to Trade Stocks

1. 50 Rules Millionaires Use to Trade Stocks

2. 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

3. 50 Rules Millionaires Use to Trade Stock Create a trading plan. Test your plan. Then, stick to it.

4. 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

5. 50 Rules Millionaires Use to Trade Stock Good management creates value. Buy companies with good leadership and management Scout out their track record.

6. 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.

7. 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.

8. 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

9. 50 Rules Millionaires Use to Trade Stock Current earnings that reduce your risk. Buy companies with earnings growth of 20% a year or more.

10. 50 Rules Millionaires Use to Trade Stock Annual earnings are a huge clue. Buy companies with annual earnings growth of 25to 50%.

11. 50 Rules Millionaires Use to Trade Stock Sell a technical breakout.

12. 50 Rules Millionaires Use to Trade Stock Sell double or triple tops. They are powerful indicators

13. 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

14. 50 Rules Millionaires Use to Trade Stock Make the market come to you. Enter with buy stops $1 over the market

15. 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

16. 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.

17. 50 Rules Millionaires Use to Trade Stock Add to winners, not your losers. Double down is double trouble unless you have very deep pockets.

18. 50 Rules Millionaires Use to Trade Stock Don’t over-trade. Know when to step back and let the market do your work

19. 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.

20. 50 Rules Millionaires Use to Trade Stock Eat from a “Silver Spoon”. It is technical formation which throws off good buy signals .

21. 50 Rules Millionaires Use to Trade Stock Know yourself. Know your ability and propensity for risk Trade within those limits.

22. 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.

23. 50 Rules Millionaires Use to Trade Stock Don’t put all your eggs in one basket. Own 25stocks over 5sectors Spread your risk

24. 50 Rules Millionaires Use to Trade Stock Invest heavily in one or two winners. Sounds conflicting to previous rule. Sometimes rules are in conflict

25. 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.

26. 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..

27. 50 Rules Millionaires Use to Trade Stock Seek wise counsel. Then get a second opinion.

28. 50 Rules Millionaires Use to Trade Stock Stay liquid. Avoid big positions in low volume markets.

29. 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.

30. 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.

31. 50 Rules Millionaires Use to Trade Stock Keep positive company. Positive people impact your attitude and attitude affects your confidence.

32. 50 Rules Millionaires Use to Trade Stock Don’t be a pig. Bulls make a little, bears make a little, and pigs get slaughtered.

33. 50 Rules Millionaires Use to Trade Stock Go with your gut. Sometimes. Not all the time.

34. 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.

35. 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.

36. 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.

37. 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

38. 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

39. 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

40. 50 Rules Millionaires Use to Trade Stock Use “trailing stops” to Jock in profits. But use fixed stops to get out of losers.

41. 50 Rules Millionaires Use to Trade Stock Hire an expert. Compare your investment results with “hired management”

42. 50 Rules Millionaires Use to Trade Stock Know the world’s power “waves.” A few huge trends drive corporate growth

43. 50 Rules Millionaires Use to Trade Stock Watch the volume signals. Volume surges are a warning of an impending change.

44. 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.

45. 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.

46. 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.

47. 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

48. 50 Rules Millionaires Use to Trade Stock Never let a winner become a loser. Use stop loss orders to protect your gains.

49. 50 Rules Millionaires Use to Trade Stock Be patient. Major price moves need time to run.

50. 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.