1. Never sell a stock just because it seems high-prcied.

2. Never buy a stock because it has had a big decline from its previous high. It is
likely that the decline is based on a very good reason. The stock may still be selling
at an extremely high.
3. Never buy on reactions or go short on rallies.
4. It is foodhardy to make a second trade if the first trade shows a loss. Never
average losses.
5. At the beginning of the move --> very large volume of sales with gradually
advancing prices for a few days followed by Normal Reaction --> volume will be
much less than on the previous days of its advance --> this is NORMAL.
6. In a day or two activity will start again and the volume will increase. If the
movement is real, in a short space of time, the natural normal reaction will have
been recovered and the stock will be selling in new high territory.
7. Have patience after attaining a good profit but don't let patience create a frame
of mind that ignores the danger signals.
8. Abnormal reaction --> reaction in one day of significant percentage from an
extreme price made in the same day --> danger.
9. Do not concern yourself with minor movements. Focus on the genuinely big ones.
10. Do not be too curious about all the reasons behind price movements. Do not
cloud your mind with non-essentials.
11. Regconize the movements and steer along with them. Do not argue with the
condition and do not ever try to combat it.
12. It is dangerous to spread out over too many stocks. It is easier to watch a few
than many.
13. Do not be completely bearish or bullish just because of one stock in the group.
Wait for signals from the other stocks in the same group.
14. When you see clearly a move coming in a particular group, act on it. But do not
let yourself act in the same way in some other group, until the signs are clear.
15. Confine your studies of movements to the prominent stocks of the day.
16. Try to analyze comparatively few groups.
17. When you are handling surplus income do not delegate the task to anyone.
18. Margin call? Close your account!!! You are on the wrong side of the market.
19. Only risk a limited amount of capital on any one venture.
20. After every successful deal, cash out one half of a profits.
21. Treat speculation as a business. Don not permit yourself to be influenced by
excitement, flattery or temptation.
22. Never make any trade unless you know you can do so with financial safety.
23. No real movement of importance ends in one day or in one week.
24. It is wrong and dangerous to buy or sell impulsively, acquiring entire line at
almost one price.
25. Never make an additional buy unless the succeeding price is higher.
26. Never make an additional short sale unless it is at a lower price than the
previous sale.