I just finished reading Tape Reading & Market Tactics by Humphrey B. Neil and at the end of the chapter he has the following rules he has come up with based on his experience.
- Put your trust in boardroom gossip
- Believe everything you hear, especially tips
- If you don't know, guess
- Follow the public
- Be impatient
- Greedily hang on for the top 1/8th
- Trade on thin margins
- Hold to your own opinion, right or wrong
- Never stay out of the market
- Accept small profits and large losses
If you follow any of these rules, I'd try and come up with ways to get over them, fast.
Here's a quote I read that really stood out for me. It's so true and sums up the difference between trading and gambling so beautifully.
"Speculation in stocks, to be successful, must include judgement, common sense, and market perception; whereas stock gambling is nothing more than guessing upon the tick of the quotation"
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