New Rules

One great thing about trading markets is that you are always learning and refining your technique. Even the greatest traders feel that they could improve. I learned a lot this week via sub-par performance. Rather than discourage me it serves as motivation to improve my skill set. Along those lines I wanted to list a couple rules that will help me in the future.

These apply to stocks, that's what I trade.

1. When the opening bell rings and you are up 3,4,5% instantly- get the fuck out. Now! Don't sit there thinking how right you are. Don't sit there thinking "wow, maybe I'm going to be up 10% today" because that shit ain't gonna happen.
2. When you are standing on the train tracks and you start to feel a vibration (even if it's barely discernible)- move! Take on foot off, get ready to run- trim positions or hedge.
3. Don't love your positions. Instead love your equity and don't ever let anyone take her away from you.
4. You don't need big positions to make big profits. It's tempting to think that with a big enough position you could make hundreds or thousands of (worthless) dollars in minutes or hours but you could lose it just as quickly. Therein lies the problem. Your plan must allow for you to be wrong because you are not always going to be right.

That's all for now. Eventually I want to compose a comprehensive list which is task I've never completed.