Set a rule that suitable your lifestyle after researching a lots of way of trading and make a list

After I did a lots of research and I found out a way that is suitable for me at this point. Everyone are different because everyone's lifestyle is different. Trading have to link with lifestyle and set up a rule of it. Write down the rule that is suitable for myself and make a list of it. More importantly is following it as a habit.

For myself, I only use the money that is extra which even I lost everything, it will not hurt my lifestyle. I start from small amounts to test that if my thoughts/rule works for me and make some adjustments.

I dived my money as 4 quaters/areas. I only allow myself to use 3 quarters because I think about loss first to make the worst situation first. If I lose my 3 quarters, I still have one quarter that I can start over. Leave a last option for myself and I won't fear while look at the red numbers.

I separated the 3 quarters that I can trade as day trade, short term, and long term. Sometimes I see that the hand change rate is so high and there might be possibility to make quick money if I get in for day trade so I will use one quarter of my money to trade. 

I separated my short term quarter as two or three industries to reduce risk. I realized that bad news for that market will affect all the company's stock price even that company is excellent company with good profits. It will make me feel a little bit better to see one green while others are all red.  

For the long term quarter, I will do some deep research to find low price companies and different industries that I think it might have good futures or potential. I will use 1/4 of the long term money to put on the company stock is very low which means very risky company. It might disappear but might be high return. Think about purchase lottery just want to buy a dream/chance.

Long term stock will need to years to raise so I will pay more attention on day trade and short term stocks. Too easy maintain/control, each of these 3 quarters I won't let imore than 3 or 4 stocks, specially day trade. It will be too overwhelming to myself to handle but that just me.

More importantly is following the rules that I set up. It is really not easy as it sounds. I need to repeatedly read my print out list to remind me not to put everything in one bucket when I see the high tech market now is doing so well. Sometimes some of these rules can be easily broken due to market change and then need to be reviewed again.

So far I like my trade rule that I set up for myself. It might only make small profit from the beginning but it might turn out something big in the long run (keep my fingers crossed! ). Market change so fast, trade safe and win big in the future is my base rue. Wish we all can be financially freedom soon!