Trading rules are very important to have. I am a strong advocate of the "Three Day Rule (of thumb)". The idea for this rule comes from Martin (Buzzy) Schwartz, author of "Pitbull". In essence, the rule states that the smart money buys (or sells) on the first day; the semi-smart money buys (or sells) on the second day; and the not-so-smart money buys (or sells) on the third day. There are many nuances to this rule. There are times when the rule should be broken...and times when it will save you from disaster. That's why I want you to view these videos.

Chart of the Day July 31st, 2013

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