LIVE BY THESE RULES
Have a plan. Set your buys / sells / profit targets / stops.
Stick to the plan. Don’t move profit targets. Don’t move stop losses. Don’t deviate.
Don’t market buy. Never market buy unless it’s part of your plan (hint: it shouldn’t be)
Don’t be greedy. Not every trade needs to be homerun. If you have a position and only 1 of 3 entries are hit, and the trade starts going your way, don’t add on impulsively. Take what the market gives you, and make a new plan for a bounce if you want to add.
Don’t chase the market. The biggest pitfall traders fall into is chasing moves - the problem is, if you are chasing, you already missed it. Play the bounce instead, if anything.
Don’t panic. Follow your plan. More positions are going to go against you after you open them then not, but believe in your plan and see it through.
Never regret, forget. If you live in a world of regret as a trader you will never be successful. Forgive yourself, learn what you can from it, and move on asap.
Don’t trade mad. Instead, ask yourself why you are in a bad mood.
Don’t roll the dice. Positions where you aren’t sure which way it’s going, so you just pick a direction and put a stop loss is called gambling.
Have patience. Probably one of the most important things to learn is to let a trade play out according to your plan instead of abandoning it early.
Listen to the noise, but don’t act on it. Information is great, but bias is bad. It is very easy to be influenced and inherent someone else’s idea of what is going to happen.
Take what the market gives you. If you have laddered short orders, and one hits, but the others don’t, it’s OK. You are still in a profitable trade. Don’t feel like you are missing more you could have had if you only bet bigger. That’s a trap mentality.
Keep a positive attitude. If you are negative, your balance will follow. This isn’t bullshit, it’s fact. Trading is not for the weak or faint of heart. Everyone has losses, shake them off. Dwelling will only lead to more losses. It’s the only way to get over the hump and become a successful trader.
Trade the trend. Don’t go against the grain, if the trend is down, short. If the trend is up, long. Playing bounces are ok, but get in and out quick. Don’t let the trade get away from you.
Don’t trade just to trade. It feels great to be in trade, the adrenaline, the feeling of making money, but forcing it just to be “in the game” is just another form of FOMO. Many times, the best trade is no trade. A good skill you can learn, ironically, is the ability not to trade.
ALWAYS use stops. The most important rule of all.