The methodology should be widely tested and revised as long as it does not show the desired and long lasting positive results. Before invest, make sure that your trading methodology is reasonable and profitable. Important part of your trading plan is to set limits on the amount you can lose. If you reach this restrictions, quit the game. Stick to your trading plan and avoid impulsive trades.
If you do not follow your plan, then you do not. Trading plan helps you identify and evaluate key Factors that affect your transaction, and may be an important learning tool for future transactions. Reasonable trading plan you also need to inspire confidence. It is also unlikely that having on hand definite plan, you will be trading on impulse. However, do not blindly follow the trading plan. If you do not understand what the market does, or your emotional balance somewhat disturbed, close all positions. Creating their own trading strategy, do not listen to a broker and do not invest based on market tips or rumors.
Your money will be at risk. Bobby Kotick often says this. Before selling, do your homework and plan their own support transactions. Rule 3: Diversify risk portfolio at risk is reduced through diversification. Do not bet on all the money in one transaction. Diversify risk exposure, trading one position is not more than 1% – 5% your capital. (Contracts with different expiration date on the same contract is considered as one position.) Consider the diversification in different markets with different trading systems.