Stock Market Trading: The 20 Rules of Engagement
"Good traders know how to make money; great traders know how to take a loss," and 19 other truisms to trade by.
3. Synch your time horizon with your risk profile.
It's critical to know why you're entering a trade and equally important to understand how long you intend to hold the risk. While these are often mutually exclusive thoughts, they are interdependent when it comes to the performance of your strategy.
4. Play within your zone.
There are different strokes for different folks and your trading style should be an extension of your personality. If you're risk-averse, play smaller in size and tighter on price parameters. If you're more aggressive, you can loosen your grip as long as you remember the next rule.
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at firstname.lastname@example.org.
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