These are simple rules, but one of the most effective philosophies for winning the market, devised 15 years ago by a great trader - Richard Rhodes. If you follow these rules and use them as often as you can, you'll make money from the market year after year, a few better years, a few fewer years - but you will make money. The rules are simple, but compliance is difficult:

1. The first and foremost rule is - During a bull market, we have to buy. This sounds very obvious, but how many of us sold out in the first bull run of the market thinking that the market was moving too far, too fast? Mistakes will prevent us from enjoying the profits we should have received. During a bull market, we should only buy or stay out.


Just buy on the bull market

2. Buy assets that show strong potential - sell assets that show weak potential. The average investor often buys when the price has fallen while the professional traders buy only because the price has recovered. This difference may sound unreasonable, but extremely convincing. The rule of survival is not necessarily "Buy low Sell high", but "Buy higher and Sell higher". With that, we must "Buy the strongest stocks and sell the weakest stocks."

3. When entering into a transaction, consider it a "trade" to life. Don't get involved when:
  • Haven't thought it through;
  • There is no additional buying strategy to increase trading value;
  • There is no action to escape in the worst case.
4. Always buy more (ie, stuffing) when the price corrects in an uptrend - buy on dips. During a bull market, buy more during corrective sessions at support levels. During the bear market, sell in a pull-back to the resistance zone. Choose corrective zones around the 33-50% threshold of the previous price step or the moving averages suitable for further buying.


5. Be patient: If trading opportunities are missed, wait for corrective sessions to appear before buying.

6. Continue to be patient: Once traded, give it time to be effective as well as make the profits you have set out to.

7. Stay patient: The old men have the saying "You won't lose money when you take your profits" - this is probably the most 'bullshit' advice has ever known. Of course, taking profit will help you avoid losses, even if the profit is very small. However, small profits will not grow into huge profits, not to mention your capital will plummet when faced with bad deals. Big profits in trading usually only come from 1, 2, or 3 large transactions per year. Therefore, you should develop a habit of being patient and satisfied with winning trades, so that they can develop into large deals as mentioned above.

8. Continue to be patient: Once you start trading, give it time to perform, time to get rid of the daily fluctuations in the market, and time for other investors to take it. out the opportunity they missed.

9. Stay patient: Small and fast losses are always good losses. Losing a small amount is not as important as the psychological stress you suffer while the account is still losing money.

10. Never, under any circumstances, buy more when you are losing money, or averaging (unless this is a scaling-in strategy). If you want to fill orders, do so only when the previous trade is profitable.

11. Take more care of profitable investments. Review your investments that are making money every day, and if you can, buy more. Eliminate investments that don't pay off, or make little returns. "Let your profits run" is always the best philosophy.

12. Do not trade until there is an agreement between Technical Analysis and Fundamental Analysis. It is possible that many Technical Analysts will disagree with this point. However, trading should only be conducted when both the Technical Analysis and the Fundamental Analysis produce the same results. If not, we will wait patiently

13. When you have a large loss, sell it all and stop trading for a few days, even months. For now, your mind is heavily dominated by losses, and your mentality will only be on how to get your lost money back at all costs. This has a heavy impact on your trading ability, should not let it have a chance to happen.

14. When we are successful in trading, increase trading activity. This is a principle based on the philosophy of "Time to stop" when the time comes, we have to trade more and more actively. However, don't let manure kill you.


Elon Musk became the richest person in the world when shares of TESLA soared. Corresponding to the sentence: "Next time, I can't stop"

15. When we are stuffing, just stuff a volume equal to 1/2 or 1/4 of the volume you are holding. For example, when you have 400 shares, you should only buy up to 100 to 200 shares. This keeps the average price you buy less than the price change range, and it will give you peace of mind even if the market corrects 50% of the value just increased.

16. Always trade in accordance with the main trend of the market, do not waste time finding small deals that go against the trend of the market regardless of whether it is potentially profitable or not. Again, we must trade in accordance with the main trend, and if no trend is the main trend, we should not trade.

17. Trading conditions around market peaks are often very active while market bottoms often have bleak trading conditions. Therefore, when you feel the market is too active, sell and vice versa, but when the market is bleak.

18. 50% of the final price movement will usually take place only about 10% of the time. Meanwhile, the first 50% of the first price move will take up 90% of the time and will require more effort. Let's try to catch the final 50%, as it will be easier.

We don't need to be "genius" to implement these rules. They are obvious and common sense, but as Voltaire put it, "Doing simple things is difficult." Trading is a business of common sense, so when we trade against common sense, we lose