My current trading rules and guidelines

Trading portfolio

Trade however I want to let out some steam and creativity.
Exit at 7(-10)% loss or if there is no action within 2-3 days.
Close all losing positions on Friday each week.
Look for faster stocks.
Stocks that have been volatile in the past usually will be volatile again.
Slow stocks are more likely to keep being slow.

Transfer cash to the portfolio below each month.

Swing trading portfolio / Long term portfolio

  1. Cut losses early
  2. Let winners run
  3. Don’t overtrade or revenge trade
  4. Focus on the big trades
  5. Concentrate to 4-10 positions

  1. Cut losses early

Preferably at around 7% and at most 10% loss if possible. 10% during intra-week?
Trailing stop loss. Move up stops to break even.
Make it a habit of cutting losses. No exceptions. Better to reenter if there is strength.

2. Let winners run

Finding bets with asymmetrical risk reward ratio.
Let them run.

3. Don’t overtrade or revenge trade

If the trades are going bad. Take a break. Most of the profit are made in a few trades in a limited time period. 50% cash over a long time period preferable.

4. Focus on the big trades

Let the small trades go.
Find the best one.
Be aggressive.

5. Concentrate to 4-10 positions

Preferably 10-25% each as initial position size.
Min 5%. Max 25%.

Max allocation per sector? 50%?

Buy 2/3. Add x 2 – 1/6 each.
Don’t average down.
The higher the risk/reward the larger the position size.

Portfolio allocation example:
20%
20%
20%
20%
5%
5%
5%
5%


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