Here is our philosophy around trading rules:

Rule should be designed to promote growth, not create limitations.
Rules should make YOU better.
Rules need to be second nature.

1. The three E’s: enter, exit, escape

Disagree, I can’t explain for proprietary reasons.

2. Avoid trading during the first 15 minutes of the market open

I agree that the first 15 minutes is risky but the most important thing to a new trader is lasting as long as possible. You are going to be better the more time that goes by, but you learn faster by doing. It is a tough balance.

3. Use limit orders, not market orders

Limits keep you out of the market, which is important. But they can also keep you in a market, which is of importance too.

4. Rookie traders should avoid using margin

Agree. Your winning positions should be larger than losing position, but a new trader doesn’t usually know which is which.

5. Have a selling plan

Agree. (more…)