Rule No. 1: Bulls, Bears Make Money, Pigs Get Slaughtered
It's essential for all traders to know when to take some off the table. More
Rule No. 2: It's OK to Pay the Taxes
Stop fearing the tax man and start fearing the loss man because gains can be fleeting. More
Rule No. 3: Don't Buy All at Once
To maximize your profits, stage your buys, work your orders and try to get the best price over time. More
Rule No. 4: Buy Damaged Stocks, Not Damaged Companies
There are no refunds on Wall Street, so do your research and focus your trades on damaged stocks rather than companies. More
Rule No. 5: Diversify to Control Risk
If you control the downside and diversify your holdings, the upside will take care of itself. More
Rule No. 6: Do Your Stock Homework
Before you buy any stock, it's important to research all aspects of the company. More
Rule No. 7: No One Made a Dime by Panicking
There will always be a better time to leave the table, so it is best to avoid the fleeing masses. More
Rule No. 8: Buy Best-of-Breed Companies
Investing in the more expensive stock is invariably worth it because you get piece of mind. More
Rule No. 9: Defend Some Stocks, Not All
When trading gets tough, pick your favorite stocks and defend only those. More
Rule No. 10: Bad Buys Won't Become Takeovers
Bad companies never get bids, so it's the good fundamentals you need to focus on. More
Rule No. 11: Don't Own Too Many Names
It can be constraining, but it's better to have a few positions you know well and like. More
Rule No. 12: Cash Is for Winners
If you don't like the market or have anything compelling to buy, it's never wrong to go with cash. More
Rule No. 13: No Woulda, Shoulda, Couldas
This damaging emotion is destructive to the positive mindset needed to make investment decisions. More
Rule No. 14: Expect, Don't Fear Corrections
It is not always clear when a correction will strike, so expect and be prepared for one at all times. More
Rule No. 15: Don't Forget Bonds
It's important to watch more than stocks, and bonds are stocks' direct competition. More
Rule No. 16: Never Subsidize Losers With Winners
Any trader stuck in this position would do well to sell sinking stocks and wait a day. More
Rule No. 17: Check Hope at the Door
Hope is emotion, pure and simple, and trading is not a game of emotion. More
Rule No. 18: Be Flexible
Recognize and be open to the unexpected shifts in the market because business, by nature, is dynamic, not static. More
Rule No. 19: When the Chiefs Retreat, So Should You
High-level executives don't quit a company for personal reasons, so that is a sign something is wrong. More
Rule No. 20: Giving Up on Value Is a Sin
If you don't have patience, think about letting someone who does run your money. More
Rule No. 21: Be a TV Critic
Accept that what you hear on television is probably right, but no more than that. More
Rule No. 22: Wait 30 Days After Preannouncements
Preannouncements signal ongoing weakness, wait 30 days to see if anything has gotten better before you pull the trigger to buy. More
Rule No. 23: Beware of Wall Street Hype
Never underestimate the promotion machine because analysts get behind stocks and can keep them propelled in an up direction well beyond reason. More
Rule No. 24: Explain Your Picks
Buying stocks is a solitary event, too solitary in fact, so always make sure you can articulate your reasoning to someone else. More
Rule No. 25: There's Always a Bull Market
It's OK if you have to work hard to find it, just don't default to what's in bear mode because you are time-constrained or intellectually lazy. More