10 Rules of the Super Trader

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3 keys to great performance


  1. Big money when it’s right.
  2. Continued profitability.
  3. Avoid big losses when you’re wrong.

Rule 1: Focus, don’t scatter


  1. Centralized positions make positions easier to manage.
  2. Concentrated positions keep you focused.
  3. Concentrating your positions allows you to be patient.

Focus on the best targets!

Rule 2: Increase Turnover


  1. Forget about the tax issues (if any) that arise from the transaction.
  2. Don’t think about the next new high.
  3. If you’re wrong, admit your mistake, don’t be persistent .

If there is a decent profit, it is necessary to stop the profit in time!

Rule 3: Timing


  1. Timing is money.
  2. Learn to read pictures.
  3. Learn to recognize the VCP pattern (The Volatility Contraction Pattern).

Sit back and wait for the opportunity to present yourself!

Rule 4: Manage Profit-to-Loss Ratios


  1. Calculate the profit/loss ratio of the trade.
  2. Do not trade with a profit/loss ratio of less than 1.
  3. Regularly monitor the floating profit of the position.
  4. On a target, don’t let a loss eat up all the profits, you must stop the loss after taking back 1/2.
  5. Do trades with high profit-to-loss ratios so that you can even out trade wear and tear.

risk first


  1. Plan your trades and place a stop loss before opening a position.
  2. Write it down, or open a position with a stop loss.
  3. Cut your losses without hesitation.

Not firm stop loss is the most devastating mistake.

Rule 5: Go with the flow


  1. Trade with the trend.
  2. Don’t flatten your stop loss.
  3. Confirm trends with multi-period analysis.

Learn to tell if a trend is healthy.

Rule 6: Increase the position with floating profit


  1. Enter in batches , not a single win or lose.
  2. On the basis of profit, increase risk exposure.
  3. Our goal is to have the largest position when the transaction is the most successful, and the smallest position when the transaction is the worst.

Why add to a position if it doesn’t make a profit after putting in 25% or 50% of the position.

Rule 7: Do parity protection as soon as possible


  1. When to do parity protection? When the floating profit reaches a profit-loss ratio of 2 to 3 times, or when it is higher than the average profit.
  2. Don’t let a decent profit turn into a loss.
  3. At the beginning of the bull market, if the 50-day moving average is not broken, you can continue to hold positions.

The priority of the operation:


a. Cut losses.

b. Affordable Protection.

c. Protect profits.

Rule 8: Sell on rallies


  1. Selling when prices are strongest is often the best price in the short term.
  2. Selling early is better than selling late.
  3. No matter whether the price rises or falls later, selling half of it can be invincible.

Rule 9: Review regularly


  1. Because trading performance doesn’t lie.
  2. Look for commonalities in failed deals.
  3. Correct your weaknesses.

Know the truth about your trade!

Rule 10: Avoid Style Drift


  1. Start by defining your own trading style.
  2. Stick to your style and be willing to sacrifice other trading opportunities.
  3. Do it repeatedly and become an expert.

Conclusion: Take responsibility for your own transactions


  • If you don’t get the results you want, don’t complain, take responsibility, learn, and act!
  • The important thing is: believe in yourself, you are more capable than you can imagine.
  • Rules are useless unless you follow them. Many traders don’t have rules, and some traders have them but don’t follow them.

Source: Super Trader Tactics with Mark Minervini

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