"Every piece of this is man's bullshit. They call this war a cloud over the land. But they made the weather and then they stand in the rain and say 'Shit, it's raining!" – Cold Mountain
The second of my three trading rules posits that the only closing price should be a stop price. In other words, I should never close a position at my own hand; only the stops should do it for me.
I think this is a great rule for trying to make the most of potential gains, but it's also the rule I break the most. Last week I was "closing out at great profits" all kinds of trades, but that is clearly a blatant violation of this rule.
One or two people have asked me about this, since it seems hypocritical. I've been torn about whether to replace this rule with another or whether to rework it so it is more practical. After all, there are times when you look at a chart (particularly a short sale) and it's so profitable, and so "stretched" to the downside, that it seems foolish not to take profits.
Anyway, I recognize this, and I'll figure it out someday. As for the market here on Sunday night, it's being kind to my /ES short so far (down 8.50 as of this writing). I'll see you Monday morning.
