Four trading rules from Yra Harris

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Harris has ultra-strict trading rules. "The first thing I want to know in a trade is not how much I can make, but how much I can lose. So my No. 1 rule is using stop-losses." He pulls his money when a security reaches predetermined downside prices. "I may get stopped out three times losing small amounts of money in a very disciplined fashion. But if the fundamentals are right, I'll keep going at it until it turns around."

Second, he never trades more than three or four positions at one time. "If I'm running too many it gets muddled," he says, adding that he watches those positions like a hawk. "I dig hard to find out why money is moving into a country that's offering a 2 percent return on money while money is moving out of a country offering 10 percent."

Third, rather than making big bets, "I'd rather hit singles or doubles consistently. I do a lot of small trades. That keeps me focused and aware of trades going on around me."

Four: "Probably the most important lesson I've learned is that you can't get locked into a mindset," Harris says. "A lot of traders just keep adding to a bad position. I've seen guys give away huge fortunes. Bottom line: The market is always right--you're not."

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