Thursday, January 29, 2009

Ground Rules

RULE #1
  • No trading for at least 1 day after 2 consecutive losing days

RULE #2
  • Trade my plan - read it once before 9:30am; read it again at 10:30am, 12pm and 2pm

ENTRY & EXIT
  • Trade only recognizable patterns
  • Enter only upon confirmation of patterns
  • Exit only when there's no more reason to stay in trade - when move is losing momentum, when pattern is busted
  • No fresh entry after 3pm unless there's a clear trend, and familiar patterns have formed

CHOPPY DAY
  • Take small loses in a non-choppy market
  • Stay the course in a choppy market, and focus on strategic exit
  • No fresh entry after 12pm on a choppy day

No comments: