Dennis Gartman's 19 Rules Of Trading

2013 was great year for stocks and a crazy year for bonds.

But the amount of money you made depends on how you traded.

Dennis Gartman, editor and publisher of the Gartman Letter, has 19 rules of trading from 2013. But these hold true in general.

Here they are verbatim:

1. NEVER, EVER, EVER ADD TO A LOSING POSITION: EVER!: Adding to a losing position eventually leads to ruin, remembering Enron, Long Term Capital Management, Nick Leeson and myriad others.
2. TRADE LIKE A MERCENARY SOLDIER: As traders/investors we are to fight on the winning side of the trade, not on the side of the trade we may believe to be economically correct. We are pragmatists first, foremost and always.
3. MENTAL CAPITAL TRUMPS REAL CAPITAL: Capital comes in two forms... mental and real... and defending losing positions diminishes one’s finite and measurable real capital and one’s infinite and immeasurable mental capital accordingly and alway.
4. WE ARE NOT IN THE BUSINESS OF BUYING LOW AND SELLING HIGH: We are in the business of buying high and selling higher, or of selling low and buying lower. Strength begets strength; weakness more weakness.
5. IN BULL MARKETS ONE MUST TRY ALWAYS TO BE LONG OR NEUTRAL: The corollary, obviously, is that in bear markets one must try always to be short or neutral. There are exceptions, but they are very, very rare.
6. "MARKETS CAN REMAIN ILLOGICAL FAR LONGER THAN YOU OR I CAN REMAIN SOLVENT:" So said Lord Keynes many years ago and he was... and is... right, for illogic does often reign, despite what the academics would have us believe.
7. BUY THAT WHICH SHOWS THE GREATEST STRENGTH; SELL THAT WHICH SHOWS THE GREATEST WEAKNESS: Metaphorically, the wettest paper sacks break most easily and the strongest winds carry ships the farthest,fastest.
8. THINK LIKE A FUNDAMENTALIST; TRADE LIKE A TECHNICIAN: Be bullish... or bearish... only when the technicals and the fundamentals, as you understand them, run in tandem.
9. TRADING RUNS IN CYCLES; SOME GOOD, MOST BAD: In the “Good Times” even one’s errors are profitable; in the inevitable “Bad Times” even the most well researched trade shall goes awry. This is the nature of trading; accept it and move on.
10. KEEP YOUR SYSTEMS SIMPLE: Complication breeds confusion; simplicity breeds elegance and profitability.
11. UNDERSTANDING MASS PSYCHOLOGY IS ALMOST ALWAYS MORE IMPORTANT THAN UNDERSTANDING ECONOMICS: Or more simply put, "When they’re cryin’ you should be buyin’ and when they’re yellin’ you should be sellin’!"
12. REMEMBER, THERE IS NEVER JUST ONE COCKROACH: The lesson of bad news is that more shall follow... usually hard upon and always with worsening impact.
13. BE PATIENT WITH WINNING TRADES; BE ENORMOUSLY IMPATIENT WITH LOSERS: Need we really say more?
14. DO MORE OF THAT WHICH IS WORKING AND LESS OF THAT WHICH IS NOT: This works well in life as well as trading. If there is a “secret” to trading... and to life... this is it.
15. CLEAN UP AFTER YOURSELF: Need we really say more? Errors only get worse.
16. SOMEONE’S ALWAYS GOT A BIGGER JUNK YARD DOG: No matter how much “work” we do on a trade, someone knows more and is more prepared than are we... and has more capital!
17. PAY ATTENTION: The market sends signals more often than not missed and/or disregarded... so pay attention!
18. WHEN THE FACTS CHANGE, CHANGE! Lord Keynes... again... once said that “ When the facts change, I change; what do you do, Sir?” When the technicals or the fundamentals of a position change, change your position, or at least reduced your exposure and perhaps exit entirely.
19. ALL RULES ARE MEANT TO BE BROKEN: But they are to be broken only rarely and true genius comes with knowing when, where and why!

(C) MAMTA BADKAR

20 Important Relationship Rules That Are Often Ignored

1. Be Honest.

Be nice, but be honest. Trust is vital. Trust is gained through honesty.

2. Compromise.

There’s a complexity to compromising.  With gender roles ever evolving it’s important to recognize it’s not about who wears the pants.  It’s about balance.  Compromise is an inherent part of a relationship.  You will have to sacrifice in a relationship.  That’s the nature of relationships.  If you want your way all of the time, stay solo.  It’s about finding a healthy balance in compromise.  Both people in a relationship must understand that necessity of compromise and sacrifice in a relationship to make it work.

3. It’s healthy to argue.

It’s healthy to bicker.  It’s not healthy to have screaming matches.  Some couples brag about “never fighting.” That’s nothing to brag about.  It probably means that one of you is holding something in.

4. It’s not your job to fix the person you love.

You can’t fix them.  You can only help them fix themselves.  You can’t resolve their work issues or wipe away all of their insecurities or get their parents back together.  All you can do is be there for them and help them through it.  Getting frustrated about your inability to fix your partner will agitate their struggles and strain your relationship.

5. Understand your significant other’s background.

It is important to recognize the person you’re with has not always been that person.  They’ve gone through things to make them that person.  Appreciate and understand their past.  Put them in context.  Maybe he doesn’t express his feelings because his family is not particularly expressive, or maybe she is so insecure because her ex was very critical.  Be conscious of this.

6. Do not underestimate the power of thoughtfulness.

Listen.  Pay attention.  There is nothing more meaningful or memorable than mentioning something in passing and then having your partner bring it back up later.

7. Do not limit expressions of love to grand gestures.

It’s impossible to keep up.  Fancy dinners or luxury vacations are wonderful, but love does not have a dollar value.  If given the option between a weekly sunset walk or an annual vacation, the majority would pick the weekly walk.  Money does not show love.  Gestures show love.  A free gesture also holds value.

8. Take all advice with a grain of salt.

Rule #13 stands, nobody knows your relationship.  Advice/tips can help, but only you and your partner know what’s right for you and your partner.  Don’t take any outside material as an absolute truth.

9. Research.

If you have a relationship question or need advice, the internet/books can be helpful tools.  There is nothing wrong with getting some perspective and advice from outside sources.

10. Value each other’s interests.

If you have different interests, which is perfectly fine, make sure you value what their interests are.  Even if vintage airplanes or nail art don’t interest you, do your best to pay attention and have respect for what your partner likes.

11. If you are not getting something you need, ask for it.

Don’t be afraid to ask for what you need.  Your partner is not a mind reader.

12. Do NOT get your sex tips from Cosmo.

13. Nobody understands your relationship.

And you don’t understand anyone else’s.  There are no exceptions to this rule.

14. Follow the Harry Burns Airport Rule.

Do not stop doing things you used to do in the beginning of the relationship.  If you used to take your guy/girl to the airport, still take them.  You should never stop trying to show your significant other that you care.  Nothing is worse than hearing “How come you never ____________ anymore?”

15. Spite will get you nowhere.

If the other person hurts you in a relationship, hurting them back on purpose will likely destroy your relationship.  If you feel the need to “get back at” the person you’re with, you shouldn’t be with them.

16. Split the bills.

Relationships should be even or close to even.  It is not a romantic idea, but it is fair.  Communicate about what you each feel comfortable with.  No one person should put more effort into a relationship than the other, so no one person should put more money into a relationship.  It will allow resentment and discomfort to build.

17. Accept that no one is perfect.

It’s about finding the right person, not the perfect person.  The perfect person doesn’t exist.  Everyone has flaws.  Everyone makes mistakes.  Prince Charming probably had one beer too many on occasion.  Cinderella probably spent too much on shoes.

18. Don’t be afraid to have the tough conversations.

If the relationship is strong and going somewhere, you should bring up the tough stuff.  If you’re falling in love but have some concerns, bring them up sooner rather than later.  It’s difficult to have serious conversations but it’s better to discover deal breakers earlier on.

19. Trust your instincts.

If you feel in your gut something is wrong, bring it up.  9 times out of 10 your instincts are correct and ignoring them will get you nowhere.

20. Be wary when discussing relationship troubles with your friends.

To a certain extent, it is healthy to discuss your relationship with your friends, but be cautious.  If you discuss every little worry, every argument, if you air every grievance, you will poison your friends against your significant other.  Find a healthy way/source to vent to that won’t backfire. 

Credit: RACHEL HARRISON 

The Kobe System: The Lessons Of Self-Motivation From Kobe Bryant That Will Ensure Success

Throughout the 17 seasons of his NBA career, Kobe Bryant has established himself as one of the most fascinating athletes ever to grace the sports world. He’s won five champions, cemented himself as a first-ballot hall-of-famer, scored more clutch three-pointers than can be counted and probably landed even more dunks. But for as a great a skill set that he has displayed on the court, the Lakers’ living legend has always been noted for the mentality that he has as a person, beyond the court.

Simply put, Kobe Bryant hasn’t always impressed with just pure talent, but he’s always been able to amaze people with his sheer will to win and the ability to play beyond himself.

And when the 15-NBA All-Star was put before a crowd while on tour in China as they quizzed him on all things basketball, Bryant was always likely to speak about one his best attributes, his mentality, as well as the strategies that he has used to motivate himself that can be used by any person in any walk of life. So, here they are, the five success lessons that we can all take away from Kobe Bryant:

Find your personality in and out of the business setting.

One of the traits that Kobe Bryant is most noted for on the court is his killer instinct. He is, quite simply, a freakishly competitive player. It’s part of the reason that he’s earned the nicknamed the Black Mamba, a moniker which he explained in more detail during his time overseas.

“Black Mamba is one of the deadliest snakes in the world. The reason why I got the name is because when I step on the basketball court, that’s what I become,” Bryant said. “So, off the court, I’m laughing, joking, having fun. But once I get on the court, that’s when I become this other person, this other thing. It helps me focus.”

Whether it’s on the court, in the classroom, the boardroom or on any playing field that life puts us on, it’s important that we find a persona to channel when it comes time for business, a mode that takes us to another level and, as Bryant says, helps us focus and become deadly at our craft.

Stephen Dunn/Getty Images

Great Challenge = Great Opportunity to shine

While it may be tempting to use a great challenge or a great task as an excuse to be intimidated, wary or timid, Kobe Bryant argues that there’s nothing like a big test to prove yourself as a big time performer. Not only is the Black Mamba speaking from experience, he is speaking from current experience as he battles back from a torn Achilles tendon injury that some suggested could have ended his career.

And while he says he could never know for certain whether he could come back, the basketball great says that it’s that seed of doubt that makes the challenge that much more inciting and that much more inviting.

“I have moments and I have days where I doubt myself. But to me, that’s the exciting part of the challenge.That’s when I realize this is a great opportunity to come out and show everybody this is how you bounce back. This is how you respond to a challenge.”

Your Critics Shouldn’t Only Motivate You, But Motivate You To Distinguish Yourself From Them

We’ve all heard it before. Haters can always provide that extra bit of fuel that one needs to push oneself to success. But Kobe takes it even further. According to the Bryant, when others try to place limitations on you, it’s just a sign of their own limitations. Their efforts to deter you are a sign that they can’t do what you’re aiming at, which shouldn’t just motivate you to prove them wrong, but should motivate you to distinguish yourself from such small time thinking.

“The people who say, ‘you will never come back from this injury,’ to me, that means that if they had this injury, if they had this injury, they would quit,” Bryant said. “That’s what that means to me. Because if they sit there and look at me and say I can’t do it, that means that if this happened to you, you wouldn’t do it. So, I have to show them just as much as I show the people who are supporting me that this can be done and I can come back from this.”

Inspiration Can Come From Many Places And Many Fields

The Lower Marion High School product says that when he was young, he didn’t just draw inspiration from the basketball great likes Jordan and Magic, but also some of the world’s greats like Beethoven and Michael Jackson, like Da Vinci and Bruce Lee. His message, motivation can come from any great, because all greats are bound to have a similarities to their methods for success.

“No matter what you do, if you want to be a basketball player, if you want to be a writer if you want to be a TV host, or whatever it is that you want to do. It’s making sure that you focus with laser-like precision on that goal and you learn from other people who have been great,” said Bryant. “Because no matter what they’re doing there’s always a common thread, there’s always a common denominator between what has made people great and what has separated good from great.”

Harry How/Getty Images

You Are Never Too Good To Gain Experience

No matter what point you get to, no matter how skilled or accomplished you become, you should never feel established enough to stop learning. The hunger to gain new knowledge is part of what Kobe calls the Mamba mentality.

“It’s really about wanting to learn and feeling like your cup is always empty, because there’s always more that you can fill it with. That’s really the important thing and just continuing to learn, learn, learn.”

If you’re skeptical, just look at it like this: If the player that has mastered almost every move and landed practically every accolade there is to land on the basketball court still feels that he has the need to learn, there is no way we can come to a point when we don’t feel the same.

Top photo credit: Allen Berezovsky/WireImage/Getty Images

Credit: JOSEPH MILORD