sternloinaz

Trading Rules

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I came across Rhodes' Trading Rules when he was a participant in SL, immediately I liked his rules and saw a lot of sense in them. Rhodes has 18 rules, my two favorites Rhodes' Rules are:

2- "Buy that which is showing strength - sell that which is showing weakness. The public continues to buy when prices have fallen. The professional buys because prices have rallied. This difference may not sound logical, but buying strength works. The rule of survival is not to "buy low, sell high", but to "buy higher and sell higher". Furthermore, when comparing various stocks within a group, buy only the strongest and sell the weakest."

16- "Think like a guerrilla warrior. We wish to fight on the side of the market that is winning, not wasting our time and capital on futile efforts to gain fame by buying the lows or selling the highs of some market movement. Our duty is to earn profits by fighting alongside the winning forces. If neither side is winning, then we don't need to fight at all."

I almost agree with SLO champion when he wrote "Reassured that the Fed will step in whenever ill winds blow, the market looks ready to keep moving up", but I am not ready to go long yet because I don't see any group showing strength. On Monday I sold half my all-short funds portfolio, then on Wednesday I sold the other half, technically the bears are still winning but maybe the forces are ready to shift.
I would like to see some ma crossovers before I start fighting on the long side, for now I'm taking my less-than-a-year 18% gain to the bank.

I'm still on the short side on my personal portfolio but I don't hold any short funds, let's see what happens in the days and weeks to come.