Starting over... again.
Working on developing a system to get me out of weakening markets and completely out of corrections. But went to cash (90%) to preserve capital in this new treacherous environment.
Rule #1 is don't lose money.
Once you start losing big hunks of money... there's not much else to say.
So the first rule of the new trading I will implement is starting with the question: How much are you willing to lose on this position?
Once you can define your risk, you can start to trade. If I don't know how much I'm willing to lose, it will always be much more than I think.
So this will involve proper position size and identifying a support level that must hold.
And secondarily, it involves identifying a benign vs. hostile market.
No comments:
Post a Comment