Trading Rules
- Never over-trade.
- Never risk more than 10% of your trading capital in a single trade.
- Never trade without protective stops.
- Never cancel a stop-loss after placing a trade.
- Never average a loss.
- Never let a profit run into a loss.
- Never buy or sell just because the price is low or high.
- Never try to guess tops or bottoms.
- Never limit a profiting trade, instead move your stops to guarantee a profit.
- Never get out of the market because you have lost patience or get in because you are anxious from waiting.
- Never hedge a losing position.
- Never change your position or close a trade without a good reason.
- Never follow a blind man’s advice.
- Never enter a trade if you are unsure of the trend. Never buck a trend.
- Avoid scalping for small profits and taking large losses.
- Avoid trading after long periods of success or failure.
- Avoiding going in and out of the market too often.
- Avoid getting in wrong or getting in right and out wrong, making a double mistake.
- Always identify strong support/resistance levels.
- Always lock in a profit at predetermined increments on profiting trades.
- Always use protective stops on open trades.
- Always distribute your risk equally among different markets.
- Always be willing to make money from both sides of the market.
- Always reduce trading after the first loss; never increase.
- Always cut your losses short and let your profits run.
Guidelines
- Understand for yourself the type of trader that you are, whether aggressive or conservative, long-term or short.
- Have a trading strategy before entering the market. Know before the trade is executed where you will take profits/loss.
- Understand why a win/loss occurred and how you could of made the trade better.
- Consistency is the key to trading success, without it you have nothing.
- Your judgment is the only concern, do not let outside factors affect the way you trade.
- Not everyone can be a trader, deem yourself worthy if given this opportunity.
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