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Sunday, October 22, 2006

My trading rules

Always Pay youreslf first-This is the first rule to save at least 10% of my paycheck so that I have money to invest.

Know my tolerance of risk-If I feel uncomfortable with my open position, this means that I have exceed my risk tolerance, my guildline is always only to invest 5 % of my total investment capital. This is also my money management rule.

Know when to exit-Choosing investment is easy, it is getting out that is hard, I always set an exit target point in every trade so that my emotion will not play a role in my trades.

Play an active role in my investment plan-It is my responsible to take care of my hard earned money , nobody cares about your money as much as you do and therefore it is important to spend some time on homework and get involved in my investment plan.

Don't be greedy-As Jim Cramer always put it"Pigs get fat and hogs get slaughtered , you will never lose money if you ring the register.

Bottom Line-Treat your investing like a business and it could potentially pay you like a business . Treat your investing like a hobby and it will pay you like a hobby.

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