Investing for Survival---20 Rules of Engagement
3.
Synch your time horizon with your risk profile.
It’s critical to know why you’re entering a trade and equally important to understand how long you intend to hold the risk. While these are often mutually exclusive thoughts, they are interdependent when it comes to the execution of your strategy.
It’s critical to know why you’re entering a trade and equally important to understand how long you intend to hold the risk. While these are often mutually exclusive thoughts, they are interdependent when it comes to the execution of your strategy.
4. Play within your zone.
There are different strokes for different folks and your trading style should be an extension of your personality. If you’re risk-averse, you should play smaller in size and tighter on price parameters. If you’re more aggressive, you can loosen your grip as long as you remember the next rule
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