My trading strategy is for guiding me to find the right stocks each day; to conduct proper due diligence analysis, to identify the the tradable stocks which have relatively minimal risk and greater reward; to determine the size of entry position so as to know my maximize potential risk, and to guide my entry and exit points in order to minimize my loss when my initial prediction of stock direction is wrong and to maximize my profit when my initial prediction of stock trend is right.

Take a look at my trading strategy mind map chat below. You are welcome to comment on it or add your own thoughts.

My trading rules are rules that regulate me during trading bad times. Rules that prevent me from reacting emotionally when my initial trending prediction is wrong, or market suddenly turns around. My trading rules strictly define what I should do and what I shouldn’t. If I follow them, I should be able to safely stay in the game and not be wiped out of my hard earned money by a single stupid trade. In other words, these rules are my safeguard to keep my emotions in control.

Note: Trading rules are updated on Nov 20, 2010.