Six Rules That Got You Through the Mess

This column was originally published on RealMoney on Aug. 17 at 8:38 a.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

Now, even though in all likelihood the markets have been saved by the Fed's cutting of the discount window rate this morning, we can't forget that the rules worked again:

1. Never sell into a panic: The Dow being down 300 Thursday was a buy, not a sell.

2. Never short an oversold market: The oscillator was the most negative since 9/11.

3. Never bet against the market when the options look is bullish: We could be up 500 on this.

4. Never, ever be short calls or puts into expiration without common.

5. Never, ever believe that the sun can't come out.

Oh, and let's add No. 6: Never listen to the people who say this stuff doesn't matter. It is everything that is needed to save the system.