Don’t buy or sell anything unless it is justified by this trading plan. Every trade must either be based on a well-established trading technique, or part of an on-going experiment.
Always define an exit strategy before entering a position. Never close an open position spontaneously.
Never move a stop loss down or take it off. Stop losses can only be moved up.
Once a profit target has been reached, exit the trade using a trailing stop loss. The best way to do this is to place a trailing stop loss order immediately after entering a position that is triggered by the stock reaching its target.
Only trade liquid securities. Stocks must have an average volume of at least one million shares, and options must have at least 100 open interest.
Never trade with money I can’t afford to lose.
Always write a blog entry for every trade that I execute with the justification for the trade.
