Thursday, February 28, 2008
The ELEVEN Commandments of Trading
The Eleven Commandments of Trading 1. Never trade more than 10% of your total capital/account value in any one position. 2. Cash is King. 3. Cut losses to 15% maximum whenever possible. If your psyche is shaken, step away and don't trade for 1 week 4. Take and enjoy profits of 30% or more. 5. Never fall in love with a stock and never force trades or over trade; remember commandment #2. 6. Never accept excuses from management, period. 7. Use technical and fundamental data & psychology/sentiment from the conference call to select trades. 8. There are two sides to the market, long & short; take advantage of that leverage. 9. Understand the significance of the macro geo-political economic environment. 10. Unforeseen events/shocks will happen, inverting the market upside down (remember commandments #1 & #2) 11. All of the above are void without reading The Psychology of the Call.
Posted by The Call Team at 12:40 PM