The 28th Trading Rule and Ending Trading Statement Balance March 27th, 2012

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Hello Traders,

First of all, let’s get the trading statement out of the way.

March 27th, 2012:  Trading Statement

Now, let’s talk about the 28th Trading Rule … wow … do I have 27 trading rules … perhaps … I will have to think on that one a lot more … 🙂

Sharp Edges

Watch Sharp Edges!

What is the 28th Trading Rule?

This is a rule I placed into my trading because I have the tendency to try too hard at month end to trade more than I should and lose more money than I use to care to admit.

In the end, once again being a small account trader is all about survival and taking profits.  I cannot stress this point to you enough!  You have to be able to trade for another day.

When I look over today’s trading on Wednesday, March 28th, 2012, then I see the market traded down in pre-market and continued to move down during the trading day.

The 28th Trading Rule in my trading is to stand aside on or after the 28th of the month and stop trading until the next month starts.  This trading rule has saved me from a lot of non-trending markets since I put it to use.

That’s it … there really isn’t much to it … stop trading and pressing a market which doesn’t really like to be traded as it closes on month end.  Conserve your firepower for more opportune times to trade.

March 28th, 2012:  2000 Trades Chart

Good Trading,

David ‘Tiger’ Knight

 

 

About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.

  • ArchBishop Hedvig Von Dikkeman V says:

    Weekly Inventories happened to fall on the 28th of March this month.

    What does your ‘urge’ to try too hard have to do with any specific day of the month or day of the week or ???
    ————–
    Wouldn’t you be better off restricting trading late in the month to either

    a) 1 & done–win or loss–1st trade and out?

    OR

    b) 2 trades and done?
    —————-
    I just don’t understand end of month in CL? There is absolutely NO reason to either overtrade or undertrade on or near last business day in any month for CL.

    I would rather see a trader limit his ‘entries’ to either 1 or 2 & done late in a month if one has the perception that he/she is trading ‘too hard’ @/near end of calendar month.

    peace

    Archbishop Hedvig Von Dikkeman V

  • TradeCraze says:

    Hello Archbishop or EVETS (backwards),

    Month end (averages) out to be a bad time to hunt for trending trades.

    It is a self-preservation rule I implemented and has served me well over the years.

    David

  • TradeCraze says:

    I do have one more comment I want to make about Month End … kind of the exception to the general rule. I will talk about it on another post.

    For an example, see March 30th, 2012.

    David