Rules, rules, rules (part 1) ...

Before I start putting my money at risk there are two sets of rules I have to create. The first set of rules cover money management, how much money to risk and how often. Investopedia has a good article on this. In limit poker part of the rules were defined for me. I could only risk bets in set increments defined by the table stakes.

The other two limit poker rules were:

1. Have a bankroll of 300 times the size of the "big blind". (So at $0.50/$1 tables, have a $300 bankroll)
2. Start each table session with 30 times the size of the "big blind". (Assuming same stakes, $30)
3. If you exhaust your funds for the session; stop, "cool off", and examine the table situation and your performance before deciding to call it a day or continue playing.
   
4. Fold when you KNOW you are beat. (This is the hardest to learn.)
   

These rules helped weather the inevitable losses, or drawdowns.

For my stock market project the rules will be:

1. Each trade will only be 2% of my total account value.
2. Total money at risk (over all current trades) will be less that 20% of total account value.
3. Use REAL stop-loss / take profit orders, not "mental" stops.
   
4. Stop, "cool off", and re-examine if I reach 30% drawdown.

Which brings us to the new footer below. The "Current Trades" portion will show each of my open trades. What I'm trading (1 July Call Option on Citigroup, Strike price $50), the Ticker symbol, how much it cost me (less than 2%, not counting commission), how much it's currently worth, and at what value my stop-loss (or take profit) order is set to. The "Account Summary" portion will show my current available balance, the current value (including holdings at risk in 'current trades'), the highest value my account has reached, the lowest value my account has reached, and the previous two entries in terms of drawdown percentage.

Right now they are all just place holders, until I fund my account later this week.

---

Current Trades

What is it? BlahBlah

Ticker: XXXX

Cost: $X.XX

Value: $X.XX

Exit Point: $X.XX

---

Trading Account Summary

Current Balance: $X.XX

Current Value: $X.XX

Highest Value: $X.XX

Lowest Value: $X.XX

Highest Drawdown: XX%