The Rule of One in investing or trading is a concept I developed in early 2023 to sharpen my focus, deepen my analysis, and boost trading efficiency. It’s so simple, I’m almost embarrassed to publish it, but its application has yielded seven-digit returns since its inception.
Since 2023, I’ve often shared that when exiting a trade, I leave one contract behind before re-entering the same trade. Some may have wondered why I do this. Honestly, I assumed everyone left one contract—to monitor the setup, stay engaged, and time the re-entry. I also would buy one CSC (coin, stock, contract) when interested in a potential investment or trading setup. I searched the internet for more insight but found nothing related to this approach.
Rule of One: History
During the early 1980s, I found my niche as an athlete turned musician turned accountant—someone who could not only play and write music, but also analyze financial statements, develop internal controls, build computers from scratch, and code in multiple languages, all with remarkable speed, focus, and energy. The answer to how and why? The Rule of One.
Take the first step. Get started with one step. Get motivated by moving forward. Put skin in the game. Don’t hesitate—move with conviction. Stay on your toes, not your heels. That way, you’re ready to act and react with precision. Stay alert. Stay mobile. Always quick to respond.
To many, life is a box of chocolates—shopping the box, hesitating, wondering what to choose as time and opportunity slip away. I’m starting to hear crickets. Make a decision. Take your shot. Don’t one-hop the ball—catch it clean. Start with one note, one dollar, one component, one step, one glance—one word. Light the fuse with one match, and let’s go. Feel the wind. Hear the drums. Watch the sky light up. This is your moment—one that will never come again.
Rule of One: Trading
Initiate Trade
First we will never try trading one CSC (coin, stock, contract), but we will acquire them.
Definition of Try: An attempt that results in un-favorable results most of the time. Do it, don’t try it. Commit yourself. Semantics? Absolutely. Be aggressive. Think positive. You’re a winner.
Bulleted thoughts may be the most effective way to communicate the Rule of One as it applies to trading—so here we go!
- I use Robinhood and Coinbase as my Rule of One platforms (speed).
- Robinhood for crypto, stock and options
- 35 trades per day is common
- Coinbase for crypto
- since 2023 maybe 1 trade per day
- Note: I utilize three other platforms for solid Investments and Long, solid options.
- maybe 1 trade a day between all three – daily
- Robinhood for crypto, stock and options
- Recommendations to buy from services
- Buy one CSC to get started
- then review trade – keep one contract or scale into the recommendation.
- Recommendations to sell from services
- Sell all but one CSC—so you can measure the service’s efficiency.
- Sell when you are ready.
- When in the course of trade discovery, you uncover a potential investment or trade…
- Buy one CSC to get started
- Do a deep dive to weigh the potential of the investment or trade
- Act upon that decision
Work the Trade by Taking Profits
We’ve eliminated the noise by acquiring one CSC of each security—allowing us to quickly focus. These are now active trades or investments we can work with directly.
Utilizing your smart phone, monitoring the percentage gain/loss per position will be all that is needed if you do not have access to your computer.
With my foot in the door, I will scale into the trades or investments that passed my deep dive research. Those trades or investments that did not pass my deep dive will be sold unless the recommendation came from a service. If the recommendation came from a service, I will hold the position of one CSC until there is a sell recommendation.
The profit cycle consists of:
- adding to position until position budget is fulfilled
- if at any time position reflects +5%, or better
- Sell all, except one CSC
- when lone CSC reflects a +1% or -1% scale back in
- stay in the position and monitor the percentage gain/loss
- repeat
Finalize Trade
If a trade was initiated by a service, wait for the sell recommendation—then sell all CSC. No trade moves in a straight line to its conclusion. A trade that closes with a +42% profit likely delivered at least +60% over the life of the trade using the method above. Even trades that expire worthless most likely offered 10%–15% or more during the lifecycle before flaming out.
If a trade did not come from a service …
- Crypto
- Close or keep existing trade
- cycle the trade
- Stocks
- Sell or keep trade
- cycle the trade
- Options
- Start new trade with new expiration and/or strike
- cycle the trade
Summary
The “Rule of One” is a trading and investing philosophy I developed to sharpen focus, boost efficiency, and improve decision-making. It centers on initiating trades with a single unit—CSC (one coin, share, or contract)—to eliminate hesitation, stay engaged, and monitor setups with precision. Whether acting on personal research or service recommendations, the method encourages scaling in only after a deep dive, and leaving one unit behind after selling and rebuying multiple times to track performance and re-entry potential. Rooted in my multidisciplinary background, the Rule of One blends conviction, agility, and minimalism into a repeatable framework for tactical execution.
