Originally Posted by -oo0(GoldTrader)0oo-

1 Use Mony you can afford to lose

Playing with the houses chips gives you more freedom.

2 Start small

One calendar spread per $1,000.00 equity.

3 How long can you hold a position?

Calendar spreads take about 6 to 8 weeks to develop.

4 Do not be a nickel and dime'er

When you want in, get in. When you want out, get out.

5 Do not put your complete position on at one price.

In this way, you can keep your wins, bigger than your losses.

6 Do not add to a losing position

Scale down losing streaks, build up winners. It is easier to add in the direction of an established trend.

7 Build a Pyramid

Add to your winners by stacking or averaging up. Build your position when you are breaking out to new highs in the seasonal window.

8 Do not form opinions during the trading day

Spread Trading is end of day trading. Read and make your plan when the market is closed. Make your daily decision about each one. Buy, hold, add, sell, or wait.

9 Do not over commit

Because calendar Spreads are fully hedged you can run tight margins. Usually it can be touch and go for about a week. Nevertheless, when that seasonal thrust starts, you can pyramid and use new equity to add diversification.

10 Avoid Market Orders

A system using limit orders may be better. Simultaneous MOO and Simultaneous MOC may be they only way you can be sure of getting in or out of spreads with minimum slippage.

11 Use everything you know

Block out opinions. You alone are responsible for your own trades.

12 Act promptly

Do not go to sleep without placing your orders for the next trading session.

13 Diversify

Spreading out your risks may reduce drawdowns.

14 Cut your losses short

Small losses, large profits.

15 Let your profits run

Longer profit runs have higher profits.

16 Always take Windfall Profits

The reason for it all. Buy yourself some luxury items.

17 Take a trading break

Trade, rest, trade, rest. -ooO-(GoldTrader)-Ooo-