Here are five of the most important trading habits for a trader to integrate into their day-to-day entry and exit decisions. If your trading plan has rules that cover these principles, then you must follow them long enough so they become habits.

  1. Always choose a price level that will prove your trade entry was wrong and set a stop loss at that level. Exit your trade when proven wrong.
  2. Trade with a position size that you can handle emotionally and mentally to avoid having insecurity or stress override your trading plan.
  3. Position size and set your stop losses so that none of your trades will end in a big loss. All trades should either be a big win, a small win, or a small loss. Eliminating big losses will increase your profitability.
  4. Always trade in the direction of least resistance during your time frame. Trade with the trend and ignore the opinions of others.
  5. Work hard to consistently execute the same trading plan you created when the market was closed, when the market is open.

For 39 more rules to turn into habits check out my best selling book: Trading Habits: 39 of the World’s Most Powerful Stock Market Rules