Quote:
Seykota's 5 trading rules
1. Ruthlessly cut losses
"The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses," he said.
2. Let your winners ride
3. Don't bet too big
As a rule of thumb, the most Seykota is willing to risk on any particular trade is about 5%.
4. Stringently adhere to your systems
5. Know when to divert from your process
"As I keep studying the markets, I sometimes find a new rule which breaks and then replaces a previous rule," he said. "This seems to be part of the process of evolution and growth of a trader."
