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Review of the SMW Trading Rules |
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Rule #1 " A Scratch Trade is a Winner." What do we mean a "scratch trade is a winner?" What we want to teach traders is how not to lose money. The key here is a defensive strategy. We don't know how to predict the market. If we buy and the market doesn't move, we SCRATCH the TRADE. Scratch means that you bought and sold at the same price and vice versa. |
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Rule #2: When initiating a trade, always get the edge: Buy the bid, sell the offer. |
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Rule #3: Never Add to A Bad Trade: Take loss as soon as possible. Stop order. Don't fool yourself. Learn to admit you are wrong. Take emotion out of trade. Rule #4: (E-Trading Rule) Emotion influences your judgment. Make your decision for the right reason. |
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INDEX |
