With real money on the line, a new trader will discover that live trading is not the same as books or simulated trading.

One of the top three things that will determine the success of a trader is the trader’s psychology. The weakest part of any trading plan is the trader himself. Stress can knock a trader out faster than anything else. Traders must treat trading as a business, and realize that it is highly probable that at least half your trades will be losers. The other half will be winners, and hopefully those winnings will be larger than the losses. A trader can’t control the market, instead, they must learn to control their own actions. How they choose entries, exits, position sizing, and method will impact the success of their trading career. The key to trading success is not fun and excitement, it is about making what you do as sterile and boring as possible, steadily making money with good trades that have the odds in your favor.

  1. Only risk 1% of total trading capital per trade with stop losses and proper position sizing.
  2. Only trade a position size you are comfortable with.
  3. Trade a method or system you believe in.
  4. Know where you will get out of a trade before you get in.
  5. Only trade with a detailed trading plan.
  6. Believe in your ability to follow your trading plan.
  7. Know yourself as a trader and only take your kind of trades.
  8. Do not listen to any unsolicited advice about the trading; follow your own plan.
  9. Sit out markets that you are uncomfortable trading due to volatility or other looming risks.
  10. Do your homework before you trade.
  11. Keep your ego out of your trading and run it like a business.
  12. Only trade when the odds are believed to be in your favor.
  13. Do not blame yourself for losses if you followed all your rules.
  14. Focus on what you are doing and realize you can’t control what the market does.
  15. Practice discipline and self control at all times.

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