What are the Weinstein’s 7 Trading Rules for Success

Stan Weinstein is a highly respected stock market analyst and trader, best known for his book Secrets for Profiting in Bull and Bear Markets (1988). His 7 trading rules for success are:

1. Never Buy or Sell Based on Tips or Rumors
   Always conduct your own analysis instead of relying on hearsay. Check the technical charts and review the news first before making any decision.
2. Don’t Fight the Trend
   Trade in the direction of the overall market trend. If the market is in an uptrend, avoid shorting; if in a downtrend, avoid going long.
3. Ride the wave
   Stick to stocks that align with the prevailing trend. A stock making new highs in a bull market is likely to continue rising. Use a trailing stop loss so that your winners keep running as these would make the real money for you.
4. Never Buy or Sell a Stock Just Because It’s Cheap or Expensive
   Stocks that appear cheap can continue to decline, and expensive stocks can keep rising. Base decisions on technical and fundamental factors.
5. When in Doubt, Get Out
   If a trade doesn’t feel right, exit and reassess. Capital preservation is key. Dont lose your capital in a losing trade. Follow your stop loss religiously.
6. Be Disciplined
   Stick to your trading plan and risk management rules. Avoid making emotional decisions.
7. Don’t Trade Too Many Stocks at Once
   Focus on a manageable number of stocks to avoid being overwhelmed and making poor decisions.