Here are twelve great rules that can give new traders a quick list to see what the right questions to answer that will lead to good trading and also a guide to more experienced traders that just can’t get to consistent profitable trading over the long term.
- Create your own quantified trading system with an edge that fits your own goals for potential returns and your personal risk tolerance.
- Keep your internal mental dialogue positive using both logic and reason as your thoughts to council yourself in during your trading.
- Only be friends with other traders that are positive and helpful in your journey.
- Only compare yourself with your past performance not other traders. Everyone has their own goals and path.
- Do not do anything that would hurt your confidence in your own discipline.
- Do not concern yourself with anyone’s trading results but your own.
- Focus on learning how to build your own trading system not following other people’s trades.
- Always be honest with yourself about your own knowledge and understanding about trading and the markets. Confidence can only come after competence.
- Assume you can learn one valuable trading lesson from every trader. Even if it is what not to do.
- Be precise in your risk management but flexible in your expectations of outcome.
- Encourage new traders to learn the importance of position sizing, entry and exit signals, and the right mindset.
- Help new traders when you can share your own experience to shorten their learning curve.