Friday, May 2, 2008

The Eleven Commandments of Trading

Bigger and better things are on the horizon. Please return Saturday night for the "Upcoming Week's Psychology". On Friday afternoon, we always ask you to obey the 11 Commandments regardless of what the markets are doing. Best Wishes for a Happy & Healthy weekend to you and yours! The Psychology of the Call team. 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.

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