At this stage, I won’t dwell on the reasons for having Trading Rules - I am sure I have hinted at this in bits of my Blogs, Website Text and Tweetering, but let’s just assume that ‘Rules’ are a good idea and move swiftly on to the Template. I tend to complete this document in Early January every year - I am never organised enough to get it nailed in December !!
OK, it is stretching a point to call it a ‘Template’ - it is more an example of how I tend to do it. Essentially it is a few ‘Parameters’ for my Individual Accounts and then a list of ‘Rules’ which should help give me guidance - this is particularly valuable when markets are tough and you are at risk of losing your nerve and panicking.