1. If you are a trader then you should never lose more than 1% of your total trading capital in any one trade through the use of position sizing based on volatility and stop losses.
  2. Don’t fight a down trend: only take high probability entries with great risk/reward ratios.
  3. Stick with your trading plan this is no time to get fancy.
  4. If you start losing money over an over then trade smaller and smaller until your system starts working again.
  5. Focus on keeping your profits from the last bull market.
  6. Honor your original stop, whatever that is, price level, time stop, not working out, or end of day stop.
  7. Don’t take a short position deep in a hole, instead short into strength when it makes sense or short initial break downs out of trading ranges.
  8. If you are playing the long side of individual stocks in a sharp downtrend and are holding a portfolio of them your account will get killed. A full portfolio of long stock positions are for up trending markets only.
  9. Be a mercenary trader and trade on the side of the market that is making money, be flexible and follow the bears or the bulls.
  10. When you don’t know what to do: do nothing.