trading guidelines

Trading Guidelines
I began trading in 1968 and I became a broker in 1983. During these years I have seen hundreds of guidelines for trading. I have condensed these guidelines which I feel best cover most situations. Many of these tips I have learned the hard way. I would like to pass them on to you so you may study them and apply them to your trading plan.
	A. Brewer Autry, President
1	ONLY TRADE WITH RISK CAPITAL. THE RISK OF LOSS IN COMMODITY FUTURE TRADING CAN BE SUBSTANTIAL. THEREFORE, YOU SHOULD CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU AFTER YOU HAVE CAREFULLY REVIEWED YOUR FINANCIAL CONDITION.
2	NEVER RISK MORE THAN 5% OF YOUR CAPITAL ON ANY TRADE. AS YOUR ACCOUNT GROWS, REDUCE YOUR RISK TO 2.5% ON ANY TRADE. ALWAYS TRADE WITHIN YOUR CAPABILITIES.
3	USE SELF-DISCIPLINE. ALWAYS USE STOP LOSS ORDERS AND PROTECT A TRADE BY USING REASONABLE PRICE LIMITS.
4	NEVER LET A PROFIT TURN INTO A LOSS. USE A STOP LOSS ORDER, THAT WILL AT LEAST BREAK EVEN OR PREFERABLY LOCK IN A PROFIT.
5	YOUR RISK SHOULD BE EQUALLY DISTRIBUTED OVER THREE OR FOUR DIFFERENT COMMODITIES, UNLESS YOU ARE A DAY TRADER AND FLAT AT THE END OF THE DAY.
6	POSITION TRADERS, IT IS BEST NOT TO COMMIT MORE THAN 35% TO MARGIN AND NEVER MORE THAN 50%.
7	REMEMBER THE "TREND IS YOUR FRIEND, SO IF YOU CAN'T GO WITH THE FLOW YOU'RE GOING TO LOSE YOUR DOUGH".
8	TRADE IN THE MOST ACTIVE MARKETS AND AVOID INACTIVE MARKETS. ALSO, TRADE THE CONTRACT MONTHS WITH THE MOST OPEN INTEREST, THEY ARE MORE LIQUID.
9	BECOME FAMILIAR WITH THE DIFFERENT TYPES OF ORDERS AND WHICH ONES ARE BEST SUITED FOR YOUR TRADING STYLE. YOUR BROKER CAN HELP YOU.
10	NEVER LET GREED TAKE CONTROL, IT IS BEST TO ALWAYS LEAVE SOME ON THE TABLE FOR THE LATE ARRIVALS.
11	AVOID TAKING SMALL PROFITS AND BIG LOSSES.
12	NEVER--NEVER--NEVER ADD TO A LOSING POSITION.
13	TRADING BECAUSE YOU ARE ANXIOUS FROM WAITING AND JUST BECAUSE YOU HAVE LOST YOUR PATIENCE WILL ALMOST CERTAINLY CAUSE LOSSES.
14	GUESSING REVERSAL POINTS CAN BE RISKY. NEVER BUY JUST BECAUSE THE PRICE OF THE COMMODITY IS LOW OR SELL JUST BECAUSE THE PRICE IS HIGH BUT LET THE MARKET PROVE ITS' DIRECTION.
15	IT IS HUMAN NATURE TO INCREASE YOUR TRADING AFTER A PERIOD OF PROFITABLE TRADES. THIS IS DEFINITELY NOT A GOOD POLICY.
16	IF YOU ARE CONFUSED BY THE MARKET ACTION, DO NOT TRADE. SOMETIMES THE BEST TRADE IS NO TRADE.
17	LEARN TO ADJUST THE SIZE OF YOUR POSITIONS AND THE FREQUENCY OF YOUR TRADES FOR DIFFERENT MARKETS.
18	LOOK AT BOTH SIDES OF THE MARKET. IT IS MORE IMPORTANT TO CHANGE YOUR POSITION IF THE MARKET CHANGES DIRECTION THAN TO WAIT AND BE STOPPED OUT.
19	LEARN FROM YOUR TRADING MISTAKES. LOOK AT EVERY ANGLE AND ASK YOURSELF WHY, THEN MOVE ON TO THE NEXT TRADE. YOU DON'T HAVE TIME TO FEEL SORRY FOR YOURSELF. THE MARKET DOESN'T CARE.
20	DEVELOP YOUR TRADING PLAN AND REMAIN FOCUSED. DO NOT ALLOW OUTSIDE INTERFERENCE ( INCLUDING YOUR BROKER ) TO AFFECT YOUR THOUGHTS.
21	ALWAYS REMAIN TRUE TO YOUR TRADING PLAN BUT KEEP AN OPEN MIND ABOUT YOUR TRADING. THIS WILL ENABLE YOU TO IMPROVE YOUR PLAN AS YOUR KNOWLEDGE OF THE MARKETS INCREASES.
22	AFTER YOU HAVE SUCCESSFULLY ACCUMULATED PROFITS AND BUILT YOUR ACCOUNT TO A PREDETERMINED LEVEL, IT'S PSYCHOLOGICALLY ADVANTAGEOUS TO WITHDRAW A PORTION OF PROFITS AND TREAT YOURSELF.
23	REMEMBER THERE ARE SIX REASONS PEOPLE LOSE MONEY [1] GREED [2] FEAR [3] GREED [4] FEAR [5] GREED [6] FEAR
24	FINALLY BELIEVE IN YOURSELF!
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