So here are the rules for my paper trading:
1) Money is no object. The account will be boosted to 1,000,000 and replenished whenever it needs more.
2) Experimentation is good. For every trade I make I will do it several ways. I will also have actively managed trades and passive trades. For the passive trades I will put it on to the best of my ability and let it expire. For the active trades I will do what I think is best.
3) I will keep a spreadsheet record of each significant trade (one that I think will be right) I make and all its permutations. I hate doing this. It is time-consuming, but with $1,000,000 and random trades there is no way to use my account balance to gauge where I stand.
4) I will size my trades for what I would do in real life
5) I will have fun.
Core Tenants (active management):
-If you have a significant profit, take it.
-Limit losses
More to come.
No comments:
Post a Comment