List of 17 General Trading Rules & Investing Lessons
- Establish your risk and stop loss before you hit the buy key.
- If it's worth trading, it's worth writing it down. Keep a journal.
- Embrace the "Law of Probabilities" and execute your system with consistency.
- Embrace technology and take it with you to track positions when you travel.
- Investing is a competition. Bring your "A" game mindset to the table every day.
- Yesterday's state of mind doesn't matter. The only thing that matters is today, here and now.
- Listen to the market. Focus on what the market is telling you, and don't concern yourself with trying to figure out why it's happening.
- Every trade should yield a key takeaway lesson.
- Stay true to your methodology and your system, not your emotions.
- Be brutally honest about your personal "enemies within" and deal with them. Know yourself.
- Procrastination and denial have no place in a trader's tool kit.
- Do not trade when you are discombobulated or out of equilibrium.
- Don't focus on the dollars. Focus instead on the execution of your trading methodology.
- Devise both a bullish and a bearish scenario for your equity when the market is closed.
- Never give back more than 50% of your profits on an equity.
- Selling is a solo inner struggle. Don't look for company.
- Never lose sight of your money management routines.