SSI's Trading Rules...

[namathfan]

In the Commodity 101 thread SSI related 10 trading rules.

PLEASE take note of rule #9...NEVER ADD TO A LOSING TRADE.

We've all chased losers on a Monday football game. You haven't seen anything until you've seen the damage that can be done by adding on to losing trades.

All aspiring traders should print that list and stick it next to your monitor.

gl

 

[SSI]

that list came off the top of my head........

adding to losing trades is the worse thing to do..... much different than cost averaging in stocks....

i once knew a sugar trader, who was buying sugar in the low 5's...... this was a very wealthy man..... he knew exactly how much money it would cost him to go to zero....... and he knew sugar wouldnt go to zero..... he had it figured out, when to add on and how much it would cost him...... but eventually hew would make it all back,,,,, simply roll the front month over and over................ this is the only example that i know --- might work by adding on to losers......

you add to winners and thats another chapter for a later date......

in down markets --- we add sells on rallies and......... and in bull markets, we buy the dips........... simple as that (not really).....

 

[SSI]

for me, there is absolutely nothing in trading........ like catching a rally in a bear market....... you can just see the sell orders come in to hammer that thing......... done it many times....... kinda like vultures on a carcass...

my broker calls it...... "a dead cat bounce"....