Rules: Very Few High Risk Trades

10:10 PM

New System: Very Few High Risk Trades

So from now on I will follow the system(link) and I will add the below rules in addition to the system.

Rule 1: Don't swing at every pitch

I learnt this from reading a book on Charlie Munger (link), we don't have to be in the market all the time. The goal will be 10-15 traders a year. YES in one year!

For instance, the past month, everyone is speculating on the Brexit, but we don't need to be involved because there is no educated guess on where this is going.

Rule 2: Bet BIG!

I believe I learnt this from an interview with Sorros. Test your theory with smaller positions, if it works, go BIG.

The system I have been using has been working for a while, losing positions closing at stop loss. Therefore each trade size stop loss will be 15-20% of the entire account. The amount we earn will depend on where the market is, but generally 1:1 risk reward is minimum.

Again there will be very few trades, and I expect them to be high percentage(see rule 1), so I am comfortable with exposure.

Rule 3: Respect the market

- Always respect the market, never move Stop Loss.

- Monitor every trade till it gets to green and TP moved to SL.

Rule 4: No correlated bets

If we are betting against USD strength, no taking another bet with the same consequence

GOLDEN RULE 5: No Averaging

Averaging works people! It works till it doesn't then you lose big.


Rules on how to copy me will be up soon!

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