Trading Rules

• 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.