Wednesday, December 22, 2010

The Daily Note - Rules of the Road

An old song I heard not long ago about being too late and getting on home. Reminds me that it is the last two weeks of the year and it is rather too late to plan any adjustments prior to the close of year. It's best to have had it all execute by now. To be "home" on time it takes as much planning as getting there. So exits have to be honored as much as entries in any position.

If there is one recurring message in all posts that I read, consciously or unconsciously intended is that your rules need to be honored. Although I extend this thought in a different direction on my other blog, trading requires rules and today I wish to drive home the point that no trading method will work unless you learn to honor its rules. Try as you may to define it differently the truth is that freedom and life require rules and in order to gain your freedom from whatever you're seeking you need to follow the rules to get you there. Without it, you will remain the slave of those who wish to define your life be it your boss, or your lender.

You may wish to kick open a box or too on the way , but giving up on rules that have worked for others also has it's consequences; namely, you will have to invent a new method which is time consuming work and you may lose a lot of capital on the way. But if you so choose it, the rules are still to be defined and tested for validity, and you still have to follow them to succeed. So, in short, you cannot avoid rules in your life no matter how you wish to live.

The sooner you realize this simple fact, and discipline yourself to follow it, the faster you'll be on your road to your freedom.

So for your Christmas present, write up your rules:

1. Don't enter a trade without a plan and a vision
2. Set your stops and let them work
3. Profits, they are gifts of your work so take them and give thanks.

Fill in whatever you need to complete the rule plan for yourself. Don't make it long. Probably only 2 or 3 is all you'll need. Don't complicate it. Simple always works better.

Happy Trading, Living and Dancing
and a Merry Christmas to all

The Daily Pick - MOS

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