Rule # 1 is not a rule it is a statement saying something like market just is doesnât make it a rule. Rule # 2 is rule #1. Any difference? Rule # 3 You guys must read this, it is too funny. â Lower your trade size when you are trading poorlyâ and last sentence âlower your trade size, try to make a tick or two â or even scratch the trade â and then raise your trade size after two consecutive winning trades.â So after making one tick on one trade and one on the other I am good to go? Rule # 4 Never turn a winner into a loser. What is a winner? One tick? Two, tree,..? Rule # 5 Your biggest loser cannot exceed your biggest winner. It can only apply to day traders that do not hold overnight, ever heard of gaps? Rule # 7 what is written about rule # 7 is a contradiction to rule # 9 and your statements in this thread. I thought you said there is no difference what size you trade as long as you are profitable with one lot and you are thinking in ticks and not dollars? Rule # 8 shouldnât exist if one follows rules # 1, 2 and 6. Rule # 10 shouldnât exist if one follows rules # 1, 2 and 6. Rule # 11 same as # 10 Rule # 12 same as # 10 and # 11. What is wrong with you? Rule # 13 about news. News are very relevant to a day trader because markets react to news, ignoring news is stupid for day trader especially for someone who tries to make 4 ticks. Rule # 14. You are saying that day trader is not a speculator, please explain. Donât you speculate that âThe probability of the winning day or week is greatly increased if you trade short termâ? Rule # 15. just plain stupid. If you follow rules # 1, 2 and 6. You just have loses as a part of the business, you do not have to love them. Rule # 16 probably applies to traders who look for 4 ticks. Rule # 17 Never take a big loss. So what do you do? Wait until it becomes a small loss? And again if you follow rules 1, 2 and 6 no need for this rule. Rule # 18 ââ¦â¦If you are a NEW e-mini S&P trader try to make just 5 or 6 points per dayâ¦..â Rule # 19 Hit singles not Home Runs. Shouldnât trader just follow the plan (system)? Rule # 21 There have been many studies showing the opposite for a day traders. Day traders perform better with profit targets or trailing stops. Scaling out of a winning position is a sure way to loose your profits (for day traders only). Rule # 22 So if system will start losing do you just keep on executing it? Rule # 23 Having plan (system) eliminates the need for this rule. Rule # 24 Cannot disagree more. Capitalization is a major factor and we are all different in that matter. The more money I have the easier for me to trade. More experience I have the easier for me to trade.
I hope we will have a refined version at the end of this thread, probably number of rules will be shrunk and each rule will be more concise.
Your "25 rules" are just a gimmick to lure a newbie. Newbie will take anything for free. I will assume that your last sentence is a response to my last sentence There is a big difference between someone who's account balance can barely cover margin for one contract and other person who can sleep comfortably holding 20 contracts overnight. I am very suspicious of the firm that cannot even name their product properly. 25 rules should be called "Our firm's policy on how to scalp for 4 ticks"
One's comfort level with holding a position overnight has nothing to do with the equity in the account. It has everything to do with the profit or loss on the account. A good rule of thumb is: don't take a losing position home overnight. Just because you can afford to lose on a trade doesn't mean that you should lose your discipline on the trade. The Rules were authored by me not my firm. You can choose to disregard the rules but ripping them as inconsequencial prooves your naivete as a trader.