Here are a couple of "rules" that I have found indispensable in keeping me from over reacting (or over reaching) in price moves that may either dismay or excite me.
Rule 1: Never transact business in the first 30 minutes of the trading day. (And I suppose that most of you know never to buy or sell after hours unless you really know what you are doing!). I cannot give attribution, for I cannot remember. I do recall seeing Tim Knight reiterate it, but I was familiar with it before then.
Rule 2: Allow twenty minutes for a daily price trend to develop (from the Logical Trader). Clearly this is for someone who has a shorter time frame, but even if you have a long time frame and you are looking to add or diminish a position, this rule will provide you with a solid surface to lean on.
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