Some David Rosenberg Rules to Remember

This list comes from Economist David Rosenberg, formerly Merrill Lynch’s chief dismal scientist, now at Gluskin Sheff:

1. In order for an economic forecast to be relevant, it must be combined with a market call.

2. Never be a slave to the date – they are no substitute for astute observation of the big picture.

3. The consensus rarely gets it right and almost always errs on the side of optimism – except at the bottom.

4. Fall in love with your partner, not your forecast.

5. No two cycles are ever the same.

6. Never hide behind your model.

7. Always seek out corroborating evidence.

8. Have respect for what the markets are telling you.

9. Be constantly aware with your forecast horizon – many clients live in the short run.

10. Of all the market forecasters, Mr. Bond gets it right most often.

11. Highlight the risks to your forecasts.

12. Get the US consumer right and everything else will take care of itself.

13. Expansions are more fun than recessions (straight from Bob Farrell’s quiver!).

List of 17 General Trading Rules & Investing Lessons

1. Establish your risk and stop loss before you hit the buy key.
2. If it's worth trading, it's worth writing it down. Keep a journal.
3. Embrace the "Law of Probabilities" and execute your system with consistency.
4. Embrace technology and take it with you to track positions when you travel.
5. Investing is a competition.  Bring your "A" game mindset to the table every day.
6. Yesterday's state of mind doesn't matter.  The only thing that matters is today, here and now.
7. Listen to the market.  Focus on what the market is telling you, and don't concern yourself with trying to figure out why it's happening.
8. Every trade should yield a key takeaway lesson.
9. Stay true to your methodology and your system, not your emotions.
10. Be brutally honest about your personal "enemies within" and deal with them. Know yourself.
11. Procrastination and denial have no place in a trader's tool kit.
12. Do not trade when you are discombobulated or out of equilibrium.
13. Don't focus on the dollars.  Focus instead on the execution of your trading methodology.
14. Devise both a bullish and a bearish scenario for your equity when the market is closed.
15. Never give back more than 50% of your profits on an equity.
16. Selling is a solo inner struggle.  Don't look for company.
17. Never lose sight of your money management routines.