Rules #1 and #1 sound like common sense but you'll be surprised to find yourself making those mistakes without thinking about it. It's part of a human instinct to want to join into the trend, even if there are clear signals that it's not the best time. We'll come late for the party with a bottle of vodka when everyone else is putting on their shoes and it won't faze us.

Check yourself every time you make a trade. Ask "is this rational?"