iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
20,873 Blog Posts

HERE ARE THE FUCKING RULES FOR TRADING

I’ve been trading before you assholes were born. I’ve sucked at it, phenomenal at it, and now I am a master at it. I know every single way you can blow the fuck up — because I have done so numerous times. I’ve seen every type of market and have been lured into murder holes more times than I can count. I am doing this post, not to teach you, but to tell you how it’s supposed to be done.

First of all, wealth is rarely created via trading. Once you accept this and understand that what you see now is the EXCEPTION TO THE RULE you will find comfort in elongating your time frame for more than 30 secs.

If you do not have a min of $25k liquid to trade, you should not trade.

If you are cash flow negative with your bills, you should not be trading.

Some will ask, “well Fly, how the fuck am I to escape the pangs of poverty without risk?”

Answer: work harder, find a side hustle, EARN money. Depending on trading for income is gambling. Any good trader understands this and knows the money at risk is money he can afford to lose.

DO NOT TRADE OPTIONS at all if you are a rookie trader, less than 5 years in the market. The reason why is you’ll get addicted to fast wins/losses and never truly understand price action. In other words, you’ll skip over booze and pot and go straight to crack head status.

DO NOT TRADE ON MARGIN. You need to learn price action and risk. Do not amplify your bullshit account, for it will only accentuate your weaknesses.

Take losses fast. If you would not buy your stocks in your trading account right now, sell them. Trading is all about momentum, especially day trading. If you missed the trade, so be it.

BOOK LOSSES fast, very fast. Max drawdown for me is 10%. I rarely let a day trade exceed -5% in losses. I typically compile about 5 runners and will cull them if they turn lower. My profits are booked equally fast, often times taking 3-5% gains. On occasion, these stocks run very fast, so I am lucky to enjoy double digit intra day gains. But this is unique and markets aren’t always this accommodating.

When holding trades for overnight morning rippers SELL IN THE PRE-MARKET if you have gains exceeding 15%. It does not fucking matter where the stock can go. You ripped 15% overnight. Being greedy is equal to being stupid.

If you have a process that is working, do not deviate until it stops working. If you begin to lose using your methods, re-examine the process and adapt.

POSITION SIZES SHOULD BE NO MORE THAN 5%. On rare occasions I will double or even triple down — but I will never hold overnight with said size. I endeavor to profit thru the quantity of my wins, not the size.

Do not over-analyze trades or get bogged down in stupid technical analysis. Only volume and price action matters. Looking at lines on a chart will never help you.

If you’re down more than 3% for the day, consider going to all cash or larger capped in order to stem losses. If you must trade, take one trade at a time and build your way back.

The highest probability outcome is most likely to make you money. In the case of stocks, most of you are ill equipped to trade, let alone day trade. However, if you have 10-20 years left in your lives you can compound returns and create real wealth. Trying to execute short cuts, more often than not, will lead to ruins. Those FUCKERS on Wall Street Bets now will most likely all get wiped clean the next correction. Their behavior will be punitive to their financial freedoms because they have no discipline and believe, foolishly, that stocks can never go lower. As you know, they can and will trade lower, especially when you least expect it. Trading is fun and can truly create wealth if done in a way that is absent of ego. But you cannot expect to turn $1k into $100k and I would bet against that person 10 out of 10 times — because someone with only $1k trying to turn it into $100k has yet to understand the basics of money, let alone understanding the complexities of trading in the world’s best casino.

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12 comments

  1. indexjoe

    Additional rule: If you don’t have 300% gains please do not buy any screens. No screens.

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  2. emersonlakepalmer
    emersonlakepalmer

    Additional rule: do not keep loaded firearms within reach

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  3. juice

    #bookmarked

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  4. indie

    All true.

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  5. tradercaddy

    I also have a rule.
    If you are reading the Fly rules and say to oneself I have the $25,000 (which by the way is the minimum required to be a pattern day trader) then forget about it.
    Get a real job, invest the max in the 401K, save as much as possible and dollar cost average into mutual funds or etfs.
    Enjoy life and don’t be a slave to the computer trading wondering if you are going under the $25,000.

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  6. asteroids

    The Epistle of Saint Fly to the barbarous masses. “Wisdom, let us be attentive”.

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  7. bob smith

    Day trading is a loser’s game.

    Trading other people’s opinions is a loser’s game.

    Day trading other people’s opinions is an inevitable road to financial ruin.

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