I have not yet formulated a complete trading strategy. Hence, that is the first warning sign! I have however a few guidelines that I will follow:
1st) No more than 30% of the portfolio at stake.
2nd) 5 positions at all times (expectation is 4 losing position and 2 winning
positions)
3rd) All postions will have an automatic stop loss of 10%
4th) Winning positions will be held for as long as possible with a trailing stop
5th) Stay away from stocks where multiple loses are incurred. That is, avoid stocks
that keep burning me!
More gudelines to follow regarding:
a) Holding period
b) Technical indicators
c) Industry and sector
d) Hedging
e) Earnings
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