Rule 16. Never Let A Winner Become A Loser - Never enter a position, be in the money significantly,
and then watch as that position becomes a loser. Once you are in the money on a trade, set a stop at
least at break even, or set a trailing stop.
After re-reading the Trade the Trade rules recently I realised that I have broken Rule 16 many times
over the last 2 months. Hence, this morning with about 6 of my 9 open trades in the green, I set tight
stops on each trade to ensure that my winning trades would not morph into losers.
The result of the above action is that 5 of my 9 open trades were stopped out today, one for a loss
and 4 trades for a win. The losing trade loss (FLT) was relatively small, and the 4 winning trades
(AGK, BHP, IAG, and RIO) were also relatively small gains. However, in these very choppy market times,
perhaps is is better to take smaller profits rather than setting looser stops in anticipation of
making large gains per trade.
Despite the above approach taken by myself today, my preference remains to use somewhat looser stops
in search of larger gains per trade over a longer (but still relatively short) time period. However,
this method of trading has not been working for me lately, hence, time to try something new.
GK, I noted the article that you posted regarding good news for IAG and not so rosy news for SUN,
which was relected truely in the closing prices of IAG and SUN today. I was short IAG up until this
morning when my IAG short was stopped out for a small profit.
