Trading rules

Here are rules derived for me from Bruce .

* The first rule of trading is don’t get caught in a situation in which you can lose a great deal of money for reasons you don’t understand.

* A trader has to be willing to make mistakes regularly- Marcus taught him about making the best judgment, being wrong, make the next best judgment, being wrong, make the third best judgment, and then double the money.

* The Heisenberg principle - If something is closely observed, the odds are it is going to be altered in the process. The more a price pattern is observed by speculators the more prone you have false signals; the more the market is a product of nonspeculative activity, the greater the significance of technical breakout.

1. analyze/review each market once in a week , come up with different scenarios and have written plan what to do when each of those scenarios are validated by market.
( Have fundamental view of the market in&out )
2. written orders: Have written buy/sell with prices for each scenarios, so any assistant can execute when it happens
3. Stop Loss: Place your stops at a point that, if reached, will reasonably indicate that the trade is wrong, not at a point determined primarily by the maximum dollar amount you are willing to lose.
4. Have Limit with order: this gives discipline you are ready to take pre-determined profit.
5. under-trade: it takes long time and loss to test what is working , so under-trade is always good.