I have been doing a lot of soul-searching about my trading rules lately, because so far this year, I've been doing a lot of running in place (racking up profits, seeing them whither, and then repeating).
My three trading rules have been up for a long time, but there are a couple of things that bugged me about them. First, there were some new rules which I really wanted to integrate, since I felt they were important. And second, I ignored "the only exit price is a stop price" rule so often as to render it a farce.
I have therefore updated my rules and expanded the list to seven. Take a look and let me know what you think.
As an aside, one critical new rule for me is with respect to sizing, because that's where I screwed up with FAZ. I normally have straight equity positions sized at about $10,000 each. I went ape-sh*t (errr, let's call it f*cktarded instead) with FAZ and bought (hanging head in shame) $150,000 of this crap among three different accounts. That. Was. Stupid.
Sure, if FAZ had a FAS-style day today, it would seem great, but missizing like this is lunacy and very damaging. Never again!
I look forward to hearing what people have to say about my updated rules list. It's very important to me.
