Stops can also be changed as the market goes in your favor to give you a profit when the market goes the other way. The fifth recommendation suggests you take your losses. This axiom is for speculators only. As a hedger, a loss in the futures side of your trade means that the cash commodity has increased in value. Number six reminds you to have a good reason for trading.
Some people trade for the fun of it.
You should trade because your market plan dictates a particular market action. The seventh recommendation warns never to attempt to outguess the top or bottom of a market. This rule raises some of the points made in recommendation number three. Again, the backbone of your trading actions should be what you've outlined in the market plan. The eighth consideration advises placing orders at the market.