I have finished reading ‘Trading in the Zone’ and I highly recommend the book as Mark explains why trading is so difficult and what approach you should use if you want to be successful. [My only quibble with the book is that it would have been even better book if it was edited properly.]
Armed with this knowledge, I am going to give trading another shot. Before I place another trade, I am going to prepare a list of trading rules which I will follow.
Here are few:
1. Define and accept the risk for each trade before I execute it. [The book explains what it means by 'accepting' the risk.]
2. Never trade without a stop loss in place. Depending upon the trade, I have decided to keep 5% as my maximum stop loss amount.
3. Never add to a losing position.
That’s it for now. I have few more thoughts and I will write about them as I explore the trading world again.