Sunday, February 5, 2012

Rules and Planning

Risk Management

I Shall Not

1.  Risk more than 2% of portfolio  on any trade
2.  Risk have more than   6%  of portfolio at any one times.

I shall 

3.  Use Hard Stops only
4.  Calculate VaR Daily
5. Use limit orders to initiate positions. 
6. Scale into positions.
7. Keep a Dairy of all positions
8.  Continue to refine rules.

I'm primarily a counter-trend trader. 
I will trade time time frames from 1 day to several months.
A short time frame may be used to fade a gap.

I will trade ETFs, Stocks, options, and currency.

At this time I will not trade Futures or bonds.

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