Why Use Rules

Why Use Rules

“Not to have control over the senses is like sailing in a rudderless ship, bound to break to pieces on coming in contact with the very first rock.”

Trading rules are established to provide guidelines. Are there exceptions to the rules? Definitely! But rules for your investment program should be for the development of proper trading habits. Correct investment perceptions are de­veloped through a minefield of emotional hurdles.

Utilizing a set of rules keeps the investor from backsliding into old habits. The statistical value of candlestick signals provides a format for an investor to have the probabilities constantly in their favor. Establishing a set of rules for your investment procedures is also putting favorable guidelines into an invest­ment program. Utilize the experience conveyed by successful investors. The rules that were expressed in this chapter were provided by the investment knowledge of successful investors throughout the years.

Trying to formulate a successful investment program without guidelines is like running in quicksand. The basis for the successful consistent extraction of profits from the trading markets is not only learning a high-probability trading technique but also establishing investment procedures to keep those profits.