18 pre-entry hard lines — every breach is tuition paid

「Tell me where I'm going to die so I'll never go there.」

— Charlie Munger

Capital limits

  1. No naked shorts
  2. No leverage, no margin, no money you can't afford to lose
  3. If not prepared to hold ≥ 3 months, don't size as core position
  4. No short-dated options (unless hedge)
  5. No intraday scalping
  6. Define invalidation before sizing up; on trigger, exit

Decision discipline

  1. Stay in your circle of competence
  2. Don't trade out of FOMO
  3. Don't trade just to do something
  4. Don't over-trade
  5. Don't fear cash drag — wait for the setup
  6. Don't decide off a single indicator

Information

  1. Verify primary sources before sizing up
  2. Don't get hypnotized by narratives (consensus = risk)
  3. Decide off close, not intraday noise

Psychology

  1. Don't envy other people's gains
  2. Don't bullshit yourself
  3. Don't trade right after a big loss or a big win