- Do Not put on a trade if you're on a time crunch
Do Not put on a trade in the first half hour (8:30 AM - 9:00 AM Central)
- Do Not put on a trade if you're frustrated or not in a calm mindset
- Do Not rush into a trade. If you feel like the trade is running away from you, Let It Go! There will be another setup a few minutes later.
- Do Not widen your stop once you're in the trade.
- If Price is above the Mid-Point; Only take Longs unless Price is rejecting a higher area of resistance such as the Upper Value Area.
- If Price is below the Mid-Point; Only take Shorts unless Price is rejecting a lower area of support such as the Lower Value Area.
- Do not even attempt to catch an absolute Top or Bottom. Let price make a higher low prior to going Long from a Bottom; and let price make a lower high before taking a short position from a Top.
Monday, January 19, 2009
My Trading Rules
I'm going to use this post to keep track of some common sense trading rules: