Friday's conundrum

So... in spite of crude oil at almost $135/barrel, rising food prices, ludicrous levels of home foreclosures and repossessions, surging unemployment, and inflation jumping the most in six months, the markets soared higher in the last two days, including today of course, normally referred to as "Profit Taking Friday”. A conundrum in the making, and a perfect illustration of why it’s absolutely essential to obey the following Eleven Commandments of Trading. Have a wonderful weekend wherever you may be and we look forward to seeing you again in this and another forum very soon.

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, and we recommend keeping 20% liquid to take advantage of dislocations and volatility.
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.