Rules of Trading

I get a few emails of people asking to add to position and asking where plays should go. Well folks I know the blog has an excellent win rate but that doesn't mean I wont have losers (I hope not :) ). These are some rules to follow as an investor.

RULES:
1- Don't hope your position gets profitable. You go into investing with due diligence and only enter with high probability of it working.
2-NEVER add to a position. There will be many many more.
3-NEVER take a big loss. (my greatest weakness)
4-Only trade small so you don't become emotional in any investment or trade.
5-Take small losses and move on. Try to definite risk before investing or trading. The main reason I tell people to trade options.
6-Winning trades will 90% work right away because you followed RULE #1.
7-Never, never get greedy. Take you profits and run. I often have people tell me oh your option play you only took 50% profit but it went to 100%, they never seem to mention when it went to a loser :) if they stayed in. When you go into a trade or investment you look for a target of profitability, if it is hit you get out and don't look back, you made your money.
8-Patience is the key to being a trader or investor. Only wait for great opportunities.
9- My greatest secret in trading. Trading is NOT random. Things run in a cycle and the way to be successful is to find the pattern of the cycles.