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Trading Rules

When I surfed the internet, I found the info below which I think are important and helpful, so I post them here again for your convenience:

Trading Rules:

- Do not blindly follow advisory services, newsletters
- Do not blindly accept a broker's advice
- Do not listen to rumors.
- Do not listen to the news about investments and trading without filtering.
- Do not listen to hot tips without filtering.
- Ignore Wall Street sayings, no matter how ancient or revered.
- Ignore insiders, they are often absolutely the worst judges of their own stock.
- Trade only in highly liquid instruments.
- Make all decisions and plans before the market opens.
- Do not change decisions and plans after the market opens.
- Make plans for all contigencies, good and bad, pre-market.
- Pyramid up longs, pyramid down shorts, if trade proves right.
- Cut losses quickly. If a trade goes against me, get out.
- For volume shares, get in, in stages, as the trend proves out.
- Let profits ride if there is no good reason to close out the position.
- Set a price stop and a time stop.
- Transfer half of winnings to cash, out of trading accounts, periodically.
- Never overtrade.
- Never completely and at once reverse a position.
- Run quickly or not at all at the first approach of danger.
- When doubtful, reduce the size of the trade.
- It is better to average up than to average down.
- Public opinion is not to be ignored.
- Quiet weak markets are good markets to sell(but buy in Thai stock market).
- In forming opinions, the element of chance should be included.

Sources:
Darvis, Nicolas – “How I Made $2,000,000 in the Stock Market” 1986
Livermore, Jesse – “How to Trade in Stocks” orig. publ. ~60+ years ago
Wyckoff, Richard – “Stock Market Technique Number 2” 1934

Note: we did some editing to be applicable to SET.


Below are some tips that apply especially to the thai market:

- Buy or stay invested if foreigners are buying for several days, sell or stay in cash if foreigners are selling

- The set closes up on fridays more often than it closes down (in a ratio of 5:3), mondays vice versa

- Buy stocks on closing and sell on opening-if the dow rallies 1% or more, the set usually ends weak the following day, so it is a good opportunity to sell on the opening. if the dow plunged 1% or more, buy on the opening.

- Most of ipo's open near the day high and close near the day low

Some Important Points

*** Some important points ***

In our posts, we often use some abbreviations.

LPP or lpp stands for "lock profit point".
If price > your cost, it's LPP; if price < cost, it's stoploss.
If price goes up, please move up your LPP accordingly.
If price goes down and your loss is 5-7%, exit no questions asked.

IP = Increase position
RP = Reduce position

NEVER allow your loss to exceed 10%, this is VERY IMPORTANT.

This portfolio is ONLY for your reference. Buy/sell at your own discretion.

Please bear in mind the 1st discipline is "protection of your principal money".

Good luck!

Welcom to FAOTSI !

Welcome Thai stock traders and investors! (Disclaimer)

Free Advices On Thai Stock Investments (FAOTSI) tries its best to offer (free of charge) info, tips, advices, suggestions for stock investments on the Stock Market of Thailand. It is to be understood by the user that due to the possibility of error, human or otherwise, "Free Advices On Thai Stock Investments" does not guarantee the accuracy or completeness of the information, tips, stock picks, suggestions nor the results obtained from the use thereof.

Making money on stock markets depends on many factors: macro-economic situation; timing to buy and sell; good analysis; insider info; good luck; etc...

You are responsible for your own money. We can not force you to buy nor sell. You have the final say on whether to buy or sell.

Investors /traders are strongly advised to visit this blog daily to check for updates on our stock recommendations because many stocks are volatile and a single trading day could reverse the outlook of the stock. Furthermore everybody is encouraged to ask for our views at anytime as we can not check all stocks we recommended or commented on a daily basis. Many times we have the feeling that there are investors around who think they can buy stocks and just wait a bit of time to get some profits without the need of follow up. It is very important to limit your loss as small as possible.

Investors have to be cautious about any and all stock recommendations. All investors/traders are kindly advised to conduct their own independent research into individual stocks before making a purchase decision. In addition, investors/traders are also advised that past stock performance is no guarantee of future price appreciation.

Any contributions or suggestions are most welcome.

Good luck, happy trading and investing on the stock market.

If you are new comer, please visit => FAQ which will help you alot.

Important: If you do not accept this disclaimer, thanks for not using this site (blog).

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