- Do all the needed homework and research about your trading style before you ever trade any real money.
- Never trade without a detailed trading plan. You have to know exactly what you will do in response to the price action before the market opens each day.
- Learn how to maximize winning trades with trailing stops or start exiting in steps and leaving a part of your position on to run.
- Trade with the trend in your time frame and quit trying to fight it.
- Never have a big losing trade. Position size so all your losing trades are small losses.
- Know what your edge is in the market, if you don’t know what your edge is you shouldn’t trade until you have one.
- Do not gamble with your trades. All your trades should be unemotional business transactions not thrill rides.
- Trade in your ego for flexibility. Stubbornness is expensive but going with the flow pays.
- Trade a little bigger when you are on a winning streak and a lot smaller during losing streaks.
- Be in losing trades for short amounts of time but when you are right stay in the trade until it stops going in your favor.