Victor Sperandeo's Nineteen Rules

 Victor Sperandeo's Nineteen Rules.

1. Trade with a plan and stick to it.

2. Trade with the trend. "The trend is your friend!"

3. Use stop loss orders whenever practical.

4. When in doubt, get out!

5. Be patient. Never overtrade.

6. Let your profits run; cut your losses short.

7. Never let a profit run into a loss. (Or always take a free position if you can.)

8. Buy weakness and sell strength. Be just as willing to sell as you are to buy.

9. Be an investor in the early stages of bull markets. Be a speculator in the latter stages of bull markets and in bear markets.

10. Never average a loss - don't add to a losing position.

11. Never buy just because the price is low. Never sell just because the price is high.

12. Trade only in liquid markets.

13. Never initiate a position in a fast market.

14. Don't trade on the basis of "tips." In other words, "trade with the trend, not your friend." Also, no matter how strongly you feel about a stock or other market, don't offer unsolicited tips or advice.

15. Always analyze your mistakes.

16. Beware of "Takeunders."

17. Never trade if your success depends on a good execution.

18. Always keep your own records of trades.

19. Know and follow the Rules!

From Trader Vic - Methods of a Wall Street Master, Victor Sperandeo with Sullivan Brown, 1991, John Wiley & Sons, extracted from Investment Psychology Explained, Martin J. Pring, 1993, John Wiley & Sons.