Profitable Week and Trading Rules

Woohoo! Positive $400 for the week. Not my biggest gain, by any means, but any week positive is something to celebrate. Still feeling like I’m learning a lot, and definitely know there is still plenty to learn. This week being options expiration for October was particularily interesting. Biggest lesson for me this week is to cut losers short and let the winners run. Could have easily doubled my profits if I’d follow those two like I should have. That’s what next week is for!

To help share some of that learning I need to do, here is a typed up version of a couple sets of scanned trading rules, as provided by rolcol325. The list is apparently from an old trading card he had access to. At any rate, here are the lists:

Trading Rules – Set #1

  1. Do not be a Tradaholic.
  2. You trade to make money – not for fun and games.
  3. Never add to a bad trade.
  4. Once you have a  profit on a trade, never let it become a loss.
  5. NO HOPING – NO WISHING – NO PRAYING – NO OPINIONS
  6. Don’t be a one-way trader – be flexible. [It's okay to short!]
  7. Concentrate on one pit.
  8. Learn quirks of traders and brokers.
  9. When initiating a trade, always get the edge: Buy the bid, sell the offer.
  10. When liquidating a bad trade, always give up the edge: Hit the bid or take the offer.
  11. A stratch trade is a “winner”.
  12. Make on tick on a million traders – not a million ticks on one trade.
  13. Never leave the pit.
  14. 3 Losing Trades in Row Rule
  15. DISCIPLINE! DISCIPLINE! DISCIPLINE!

Trading Rules – Set #2

  1. Practice your trading. The first hundred trades are the hardest.
  2. Do not overtrade. Best to begin with one lots.
  3. If you are caught taking more units than you can handle, immediately get out of excess.
  4. Use discomfort to your advantage – it may never go away.
  5. Work on each trade. Don’t lay back.
  6. The ability to let a profit run is a developed skill.
  7. Try not to be habitually bullish or bearish.
  8. Never add to a losing position.
  9. Learn quirks of other traders and brokers.
  10. Watch disciplined traders. Try to model yourself after them.
  11. Continuity is important; don’t leave the pit.
  12. Work on one or two reasonable goals at a time.
  13. Be more interested in establishing a working pattern rather than making it big on one trade.
  14. Spreading generates economic advantage and informational edges.

Both of these are great lists, even if I don’t understand each rule 100%. That probably means they’re the next set of things I need to learn. :) If you’re up for more, FirstAdopter also has a post on lessons from Paul Tudor Jones that is a quite excellent read. Both of the lists and the lessons from PTJ are worth reading on a regular basis.

Enjoy, and happy trading this week!

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