Rules you need to follow before you start trading every morning

• Risk management is the most important piece in this game.  You are nothing without it, you can trade pretty much whatever you want however you want with the proper risk management.  Your Ivy league degree, your 30 years of experience, your fool proof quant system means nothing without risk management, if you don’t think so look at Long Term Capital hedge fund, Lehman Bros, Victor Neiderhoffer, Amranth, Eike Batista, and the list goes on and on.

• You have to accept the fact that as you are going to be wrong 50% of the time, you must ACCEPT this, many don’t.

• As trader there is a very high probability that 80% of your returns will come in 2-3 months, the rest of the year it will be a grind, you don’t know when your sweet spot will come so stay thirsty.

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