Harvey's 3 Rules

I just finished reading Adventures of a Currency Trader: A fable about Trading, Courage, and Doing the Right Thing by Rob Booker (yes, I know my blog says that I'm currently reading Exceptional Trading by Ruth Roosevelt and I still am, but I tend to read several books at the same time). It was a pretty good read and I must admit that there are some really good lessons to be taken from the book.

One thing that stood out to me was Harvey's 3 rules. In the book, Harvey is the mentor that helps the main character, Harry Banes, become a successful trader. Harvey claims that the "most important laws of currency trading have nothing to do with entries and exits." I would agree with that statement. Here are Harvey's 3 important rules:

1. Thou Shalt Never Lose More Than 25 Perecent of Thine Account.
2. Thou Shalt Test Before Trading.
3. Thou Shalt Stand Accountable to Another Person for Thy Trades.

Pretty good rules and overall a good book. Check it out sometime...especially if you're interested in trading currencies.

TLT