Trading Rules

What are your trading rules?
Trading rules are essential in trading.
Investing rules are essential too.
Rules are essential part of the investing or trading plan

Rules control the trader and investor.

Investing rules could be no buying or investing in companies that are trading under 10 cents. or trading in the OTC markets. etc

My tab in the spreadsheet should have trading rule and only 5 rules

Rules:
never average down
no more than 70% leverage
stops on all trade
maximum 3% loss per trade
no afterhours position if loss

http://www.marketcentral.ca/expectancy/traderecord.xlsx

 

buy low, sell high

 

The rule must be quantifiable.
Such as, what is high or low?

ie vix is 80-- cover if short.
vix has never been 80 in the last 50 years. or longer.
there was no vix since options were not legalized til 1970 in the us markets

 

https://www.spglobal.com/en/researc...-above-80-expect-5-daily-swings-in-the-sp-500

VIX hit 82.69 on Thursday March 16th 2020 but one of my data providers (image below) shows it reached over 83.





wrbtrader

 

Nr 1 rule?!
If you cannot trade profitable with something easy as the classical technical analysis (for position trading), you should not be trading at all.

 

Buy lower, sell higher

 

Vague over general rules like buy low sell high rules. Those are not rules but opinions.

 

How about BTFD?

 

Rules are made to be broken.

Now I average down.

 

My kids will think you're cool to hang out with.



wrbtrader