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Can Trading Rules be Broken ?

In my previous post , I quoted this :

” The first rule of trading is to survive ; the second rule is that all rules can be broken if that supports the first rule. ”

The Stock Market is a complex environment. Market condition changes every second , sometimes you know the reason , sometimes you don’t. Trading systems and trading rules are meant to guide us during our execution of trades.

Trading Rules are not carved on solid rock. At times we need to review and edit some of the rules that do not work anymore.

I would like to quote a driving example here …

Imagine if you are driving along the road and an oncoming truck is heading towards you in your lane , do you stay in that lane or swerve across to the empty lane ( assuming no vehicles there ) where you are not supposed to be ? The rules are clear , you are not supposed to be over there in the wrong lane. The system says not to do it , but reality is a big truck coming toward you in your lane.

Do we follow all the rules of safe driving , or do we adapt to the situation at hand ? Survival is a function of adaptation. Reality rules , on the road , and in The Markets …