Circumstances like these remind us - and should emphasize to one and all - the importance of the 11 Commandments. Come back this weekend for our "Psychology of the Upcoming Week's Earnings and Economic Data". Until then we leave you with, and encourage you to follow the Commandments.
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, but always keep a minimum of 20% liquid.
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.