Trading Techniques   

Richard Rhodes' Trading Rules

ten4one... :)


All pure "Right-Brain" stuff !!!

As usual, a great post !... :)

 

Haha...Realty rules and rules are made to be broken....No doubt about that! Unfortunately reality is not a rule and not all rules are '' real'' and therefore they must be broken for the better. If everybody follows the rules without questioning, then The Stock Market would be as predictable as the sun will rise in the East and set in the West!

It is a natural instinct for all animals to survive and that is not a rule - that is the fact of life.

In conclusion, rules are just there and formated as a guide and not all rules are good rules and there is no rule to say that they can't be broken!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Cheers!

 

hahaha... so cute... :)

 

Liquidity in The S'pore Market now is not a problem due to the strong Sin$ and economy. Hedge Funds come and go as they like.If the incoming funds balance the outgoing that would be great and ideal., but in reality, it is never the case. Too much outflows from the Stock Market for along period could stagnant or worst crash the Market. An overflow and over times could over-inflate The Market and could certainly cause the ballon to  blow up without any warning!

Without the Funds, there won't be any more FUNs! Cheers!

 

once u buy a share .... it's the market to decide up or down, the recent clash or correction, it's all in the west , there is lots of liquidity here, and from what we see in HPL , the marker will recover soon... right?

 

Simple rules to comprehend,
but difficult ones to actually follow.

Such is the irony of life.... haiz...

Anyway, good stuff as usual which one should really try to follow...

 

I am glad to note that points 2,3 5,6 9,10 are similar to mine:).

 

Yes...

I believe you are on the right track...

And you have apparently also discovered how to get the most from the stock market... :)

 

Hi Ipunter,

Yes I agree with you that the market means different things to different people and we need to learn our own stratergy, I am learning everyday, patience in not one of my virtue's but I am learning that is 'the most important thing!'  So far I am able to pay off my mortage and loans from what I earn from the market but not taken too many risks so the earnings are limited. Maybe I will feel more confident with experien e.Happy trading to all.

 

tanyagary...

There are as many methods of playing the market as there are koyoks (medicinal formulae) sale.

There is no short cut...

One has to tread the road himself/herself to benefit the most.

In any case, especially in the stock market, advice will not be heeded.

 

to Ig6273 and all experts out there!

Thanks for all the advice and opinions from all the experts. I personally have learnt alot from this forum.Keep them coming as we newbies are learning alot from all you as we develop our own trading stratregies and learn from experience -still a long way to go tho !

I  cannot quite get rule no 4- about trading in a bear market  '....add to correction on resistance use 33% to 50% on the previous resistance....' eg singtel 1st resistance 3.70, 2nd 3.35 and subsequent supp 2.90 when should u buy when in a down trend in this instance without using MA's

 

It seems to me in the stock market, the most important rule is ignored all the time!

This rule (or truth) is...

"The stock market is not the place to make money quickly"

 

Strange indeed. Larry Williams used almost the same analogy - that of driving a car and avoiding an accident to describe "Reality rules" in the conclusion of his book that has been highly recommended by Singaporegal. I quote as follows:

Reality rules. On the road, in the markets:

The first rule of life is to survive; the second rule is that all rules can be broken if that supports the first rule.

But then if everyone breaks Rules for his own sake, chaos will rein in the society and market place and many innocent people will get hurt with the domino effect!!! Like the collapse of Pan Electric, CAO and Enron, etc....Really a Paradox!  

 

ten4one...

You have to believe me... :)

I really 'lapped up' every word of your post below like a hungry doggy!...

You described the process so beautifully that I just love it!

You are simply great... :)

 

Oh yes! Independent and flexibility are 2 of the many qualities of a good Trader! Cheers!

 

Have an independent mind. Good to seek advises but at the end of the day,  develop your on strategy. Don't be so rigid

 

Rules are only guideline and they don't really work all the times. They only work when you're starting to do new things - like learning to drive.

As a learner-driver, you have to adhere to all the rules or else you'll fail. After passing, you drive still stick to the rules and maybe just break one or two simple rules like parking or signaling. As years past the driving is like 2nd nature, and you drive without even bothering with the rules. In fact, now you've picked new 'rules' in order to go thru traffic.You begin to know how to anticipate other Road Users actions and learn to avoid accidents better.You know when to speed and when to slow down. You've acquired knowledge how your car will react in the wet and dry and what tyre pressure is suitable for your style of driving in the city and going north. All these you pick-up along the way and more as you go on. Surprisingly, it is similar in investings or tradings.Cheers!

 

ten4one and lausk22...

Both your views are so sensible, valuable and practical too... )

One must quickly step aside the moment one starts to 'smell shit'..

And lausk22's view also points to "right-brain" thinking, too...

Both very good... :)

 

But there is the contrarian's view that rules are meant to be broken. Rigid adherence to rules means that we are too boxed in - not thinking or acting out-of-the-box! Such entrenched mindset could doom one to failure.

 

Rules only work if you follow through them with discipline.

I have rules but sometimes when emotions get the better of me and I break those rules, I usually suffer the consequences by losing my hard earned money!