HOW TO TRADE
Have a well-defined plan before you start trading, then follow that plan, as the architect does in building a house, or the engineer in constructing a bridge or driving a tunnel. The man, who hanges his ideas or his plans, which are based on something practical, for no other reason than that he hopes or fears the market will do something different, will never make a success. Don’t guess or follow tips. Very few people from the inside ever give out good information. Have a reason for every trade; don’t trade on hope. If that is the only reason or excuse you have for holding a stock, get out quickly and you will save money. Conditions change and you must learn to change your mind. First find out if a rule is practical; if it is based on sound reasoning. Go back over past records and convince yourself that it pays to use it.
