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Small thread from my old journal about few rules I marked when moved from mechanical to discretional way of trading..I have made some improvement for sure and still finding ways to improve 1/8
Every trade comes with some context and logic.When that reasoning gets invalidated stay out of the trade and wait for next info.Don't skip the original reasoning and look for another favorable reason to hold the trade 2/8
It happens all the time.Many scenarios play out to favor yes as well as no for every decision..So first thing is to quit the trade when original logic is negated then think about alternative.Once you are out of the trade you can rationally analyse things in a better way 3/8
Keep bigger picture in mind before making every trading decision.Try to avoid decisions against bigger picture.For eg, When you have trending profiles upside and day got a gap+tail+higher value day means avoid shorting decision when market lures in every sharp pullback 4/8
Distribution of winners in any method of trading are always skewed.1 day in a week or 2 days in a month is going to make a big difference most of the times..One cannot wait and try to catch most of winners 5/8
Have to keep the grind as much as possible with all your basics ticked and that will make sure we get the small winners and losers and then one good winner and then again series of winners and losers mixed..That's how the game is and there is no other way 6/8
When auction is confusing a lot better to defer the decision to enter..No point in giving too much thoughts for a dull narrow range market when nothing is happening.Longer we stay out of indecisive market,opportunity for one good trade increases.Applies to any time frame 7/8
When market offers quite a deep profit in quick time via intra spike or large gap etc always part book don't be greedy.Outlier environments wont stay longer as lot jump in to utilise the opportunity 8/8 #end
