I have learnt the following rules, by committing mistakes, in last 15 years of my stock trading experience. Let me read it loud and refresh them before making any move.
1. Do not chase the market.
2. Be fearful when others are greedy.
3. Hedged positions offer the consistent results in a long run.
4. Do not put all eggs in one basket.
5. Keep about 50% of portfolio in cash.
6. Balanced portfolio have the strength to absorb any market shock.
7. Today is not the last day to enter/exit a trade.
8. Go for coffee when there is panic in the stock market.
9. Have mental stop losses, but avoid Good Till Cancel (GTC) order with a stop loss.
10. Help me out with more from your experience!!!
Highlights:
- Booked gains in FXI - 8% gains
- Opened Texas position - in money by 8%
- Opened SPX position - in money but current bid is at 2% loss
- RGOLD position - huge 25% gain (position open)
- VIX Calendar - breakeven
- SPY Spread - 12% loss (position open)- double position
Overall, we are in great shape. I might rollover SPY spread sell leg to next week to balance positions, if the market doesn't show weakness tomorrow. S&P is trading above resistance, but DOW is still around resistance levels. Let's take a break before market direction is confirmed.
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