1) Manage the Risk first, then think about the Reward.
2) Keep trading positions small. Big positions = Big losses.
3) Money management is the key to trading survival.
4) Be very selective of stock and option choices.
5) Learn to be Consistent.
6) Trade the market, not your opinion of it.
7) Plan the trade – trade the plan.
8) Have a clear reason for being in the trade.
9) Learn to be Patient and Disciplined.
10) Know the previous direction of the stock/contract you’re trading (i.e., whether it came from a downtrend, uptrend, or sideways trend).
11) Know your exit conditions in advance.
12) Take what the market will give you, rather than what you would like it to give you.
13) Trade where the crowd it, not where it has been.
14) Accept responsibility for your actions. It’s ok to be wrong on a trade! Just cut your losses!
15) Manage every trade, every day.
16) Treat each trade as a separate event. Don’t harp on the last trade!
17) Always analyze winners and losers. But never agonize.
18) Trading is about lifestyle, so we can do without the stress.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.