Personal Trading Rules Hk-001
Personal Trading Rules Hk-001
Personal Trading Rules Hk-001
(Dynamic list: continually updated dependant on trading style and experience gained)
Executive Summary
Plan Details
Instrument’s Traded
Money Management
Risk
Asset Allocation
Position Size
Entry
Exit
Stop Loss
Stop placement
Targets
Patterns Traded
Trade Set-Ups - (Define)
Indicators
Trading Hours
Trading Journal
Basic Rules
Additional Thoughts
o Five Fundamental Truths – Douglas
o Seven Traits for Consistent Winner – Douglas
o Bias
o Patience
o Discipline
o Attitude
o Loss and Failure
Instrument’s Traded
ES
NQ
ER2
DAX
ETF’s, QQQQ, SPY, VTI, VWO,VGK,VPL,VNQ
Money management
Risk - (define)
Asset allocation
Pay self; first 20% of earnings may be spent on discretionary items. Family fund.
80% of portfolio conservative investments, index’s, bonds, trust deeds etc (with stop-loss)
never more than 20% of portfolio for aggressive investments/trades
trading account not to exceed 10% of total portfolio
initial trading account not to exceed $50K 6-months, $100,000 12-months, $200,000 year 2
Allocate 30% of earnings for taxes
Minimum of 50% of trading net earnings to be re-invested
Minimum of 75% of investment net earnings to be re-invested
College/retirement fund’s to remain in conservative accounts
Position Size
Entry
Exit
Stop placement
Targets
Trading Hours
Trading Journal
Bias
Patience
Attitude
Keep a positive attitude, no matter how much you lose. Another opportunity will present itself.
Don't take the market home.
Successful traders are not afraid to buy high and sell low (small stops will protect your)
Successful traders buy into bad news and sell into good news.
Beware of large positions that can control your emotions. Don't be overly aggressive with the market.
Only take positions which you are comfortable with and can accept if trade goes south.
You must believe in yourself and your judgment if you expect to make a living at this game.
Be humble - on every trade there exists a more experienced trader on other side