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Paul Risi: Three Cardinal Rules

Three Cardinal Rules in Trading

Back nung wala pa ako GUT i dont follow rules in trading. Wala akong plan sa entry and exit. I just buy and sell not knowing where the support and resistance is. Walang strategy and chart as basis for entry. instead follow yung mga nakikita ko na mga recos, hype and gurus. And am thankful now Maam teaches us these Cardinal Rules sa Trading.

First is BUY ON EOD, EOD kasi Mama strat yun ang unang strategy that we learn from Maam. Eod lang tingin sa market if wala hawak na stock. Me tendency kasi na mapapabili ka ng stock, kahit wala sa watchlist mo yan. Andun palagi excitement to buy kahit wala sa plan mo. kahit wala pa yun final price early entry kana dahil sa excited ka to buy. Kung wala ka hawak to something that will make you busy. Do your hobbies, gawin mo kung ano gusto mo like watch movies, shopping ka or read, anything that will keep you busy and away from the market.

Second, No Opinion/Dont get hype. Sa trading dapat wala tayo opinion sa iba. Like me makita tayo sa mga groups na buy ka nito tataas yan, bodega na something ganun. Wala tayo dapat opinion dun. In the first place wala sa watchlist mo yun. Iwasan natin yun mga noise sa market. It will affect your psyche. If me ngrally nman na mga stock, mga tumaas di tayo nakasakay, dont worry di po tayo mauubusan ng opportunity sa market. Focus lang tayo sa watchlist natin at sipagan natin magaral wag tamad, wag tayo asa sa mga recos. Wag tau magbase opinion ng ibang tao. Let’s have our own strategy. If your strat tells you to buy then buy, if sell then sell. Dont ever hope na tataas pa yan, kahit yun iba sasabihin tataas pa yan. Trade on your own not on others’ trading style.

Third, Don’t look back after selling. After sell wag na balikan kasi there are some na kapag nakapagsell na, bigla tumataas, so me tendency na buy ka ulit, nandun yun thought oy sayang tumaas pa pla. Let’s be contented na sa profit even small gain. What di ka pa ngsell at reverse yun ngyari gap down, see loss ka pa.

Ito yun Cardinal rules that we learn from Maam. I hope it will help and benefit you also. Malaking help nito sa trading journey ko, mas naging relax ako, di na ako ngoover trading, unlike before dami ko hawak na stocks dahil sa hype and fomo. Again thank you Maam for not giving up on us. Have a good day.

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