DeHaemer’s 55 Rules of Trading, Part 2

DeHaemer’s 55 Rules of Trading, Part 2

They did a study of Harvard graduates a few years ago. They asked these type-A, hard-working achievers, to write down their short, medium, and long-term goals. Then they asked them to write a goal every day, once a quarter, and once a year.

The people who wrote down their goals did significantly better than those who didn’t.

Here is the bit from Forbes:

“A Harvard Business Study found that the 3% of graduates from their MBA who had their goals written down, ended up earning ten times as much as the other 97% put together, just ten years after graduation.”

When you have set clear goals for what you want to accomplish and plans to achieve those goals, you have a much better chance of attaining them. Writing goals down gives you focus and helps clarify your mission.

The same thing happens in investing. If you want three million to retire at 55, or if you want to put 20% down to buy a house, write these goals down and work towards it. It’s that simple.

Here is Part 2 of DeHaemer’s 55 Rules of Trading:

Rule #14: Have an investment goal and work toward it.

Rule #15: Use stock screens.

Rule #16: A low P/E ratio, high growth rate, insider buying, and no debt make any stock a buy.

Rule #17: Draw trend lines. If a stock is in a downtrend, don’t go long, and vice versa.

Rule #18: If you learn only one candlestick pattern, learn what a doji at the top of a trend looks like.

Rule #19: Never give a stock an even bet. If you don’t have an advantage, you will lose.

Rule #20: The market wants you to lose money. It is a ravenous beast. It wants to take your life savings, turn your hard work into vapor, and laugh at you as you squirm in the dirt. So, always have an exit plan. Have a price at which you will sell no matter what, and stick to it.

All the best,

Christian DeHaemer

Outsider Club

DeHaemer’s 55 Rules of Trading, Part 2

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