Let winners run. While momentum is in phase, the market can run much further than might be expected.
Corollary to that rule: Do not exit winners without reason!
Be quick to admit when wrong and get flat.
Sometimes a time stop is the right solution. If a position is entered, but the anticipated scenario does not develop then get out.
Remember: if one thing isn’t happening the other thing probably is. Historically, this has never been good for me…
Be careful of correlations. Several positions can often equal one large position bearing unacceptable risk. Please think.
I am responsible for risk management, money management, trade management, doing the analytical work and putting on every trade that comes.
I am not responsible for the outcome of any one trade. Markets are highly random. I do not have a crystal ball. I am not as smart as I think I am.
Risk management is the first and last responsibility. I can make almost any mistake and be ok as long as I do not violate my risk management parameters.
Opportunity comes every day. Do not neglect the work. Must do analysis every day.
Opportunity comes every day. Get out of poor positions. Move on.
I am a better countertrend trader than a trend trader. Sometimes the crowd is right, and they will run me over at those times if I’m not quick to admit I’m wrong.
If you’re going to do something stupid, at least do it on smaller size.