Never be fully invested
In my mind, cash is a bullet, if you don’t have bullet, then you can’t act in any market. How to have some cash available. The solution is used approach in the fund management based on diversification. It is very good to normal investor to have market return. It is impossible to beat market consistently. I don’t like this approach, as I want to beat market.
Never buy big position at once
Never sell big position at once
Never try to get the exact bottom when you long
Never try to get the exact top when you short
Never issue a order on the fly
Never cut the big loss
Never buy out of money option
Never buy short term option
Never take a small profit
Saturday, December 13, 2008
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