25 Rules trader: Mantra to work on discipline


Do not be greedy. This is just one of the transactions. For this session you will still have time to open a lot of deals, and more in the future. In the market there is always a possibility. Remember, none of your transactions should not drastically affect the outcome of the day with both positive and negative sides. Do not be greedy.

5 LARGEST LOSS must not exceed the highest win.

Document every transaction you make. If, for example, you can see that today the biggest profit trade brought 50 points, do not let losing trades exceed these 50 points. Do not let the losses exceed the gains accumulated since in fact the result of the trading day will be the net loss for the two transactions. Not good.

6 developed his method and work strictly on it. You can not change trading strategy like a glove.

Usually I ask of my students, so they made a list of specific conditions (patterns and models), which we have to open the transaction. I do not need to know what methods they use, but I want to in front of them was a list of rules, patterns or behaviors prices that allow you to open trade. Need to make a game plan.

If you hold proven trading strategy, but today it did not work, drop it and do not look for a new one. If your strategy is effective in more than half the time, then work on it.

7 Be yourself. Should not strive to be someone else.

For all the time in the markets I have never had to open a transaction volume of more than 50 lots. My colleagues, for example, who work on the trading floors, open positions 100-200 lots in one go. But for such a huge volume of transactions I do not have the emotional or psychological training. And that's OK. I know my comfort zone - it is somewhere 10-20 lots per trade. And if ever a work item is more than 20, I instantly "I cut" deal. Just at the level of emotion I can not cope with this volume. Such transactions often lead to losses because I find it difficult to trade on the same professional level as a transaction in 10 lots.

If we talk about the volume of transactions, and learn how to find work in their comfort zone. You are the one who you are.

8 must always be in the solvency position to be able to come to market the next day and continued to work.

Never bring themselves to the precarious state when you lose more than you can afford. Worst of all, when you want to trade, but can not because Money merged, and the broker can not sell until you have credited your account.

From my students, I demand that every day they have been calculated loss limit. For example, today you can not lose more than $ 500. As soon as the loss is $ 500, immediately turn off your computer and go to rest until tomorrow. Tomorrow, you can always go back to work.

9 RIGHT TO INCREASE LOT to be earned.

Too many new traders believe that if they have $ 25,000 in the account, they can open the position of 5-10 contracts for E-mini S & P. There is nothing more absurd. If you can not successfully sell one lot, why do you think you'll have to trade ten?