30 Best Trading Rules

Thirty rules that can help the new trader survive that first year in the trading the markets or take the unprofitable trader much closer to profitability.
Rule 01

Be flexible and go with the flow of the markets price action, stubbornness, egos, and emotions are the worst indicators for entries and exits.
Rule 02

Understand that the trader only chooses their entries, exits, position size, and risk and the market chooses whether they are profitable or not.
Rule 03

You must have a trading plan before you start to trade, that has to be your anchor in decision making.
Rule 04

You have to let go of wanting to always be right about your trade and exchange it for wanting to make money. The first step of making money is to cut a loser short the moment it is confirmed that you are wrong.
Rule 05

Never trade position sizes so big that your emotions take over from your trading plan.
Rule 06

 “If it feels good, don’t do it.” – Richard Weissman
Rule 07

Trade your biggest position sizes during winning streaks and your smallest position sizes during losing streaks. Not too big and trade your smallest when in a losing streak.
Rule 08

Do not worry about losing money that can be made back worry about losing your trading discipline.
Rule 09

A losing trade costs you money but letting a big losing trade get too far out of hand can cause you to lose your nerve. Cut losses for the sake o your nerves as much as for the sake of capital preservation.
Rule 10

A trader can only go on to success after they have faith in themselves as a trader, their trading system as a winner, and know that they will stay disciplined in their trading journey.
Rule 11

Never enter a trade before you know where you will exit if proven wrong.
Rule 12

First find the right stop loss level that will show you that you’re wrong about a trade then set your positions size based on that price level.
Rule 13

Focus like a laser on how much capital can be lost on any trade first before you enter not on how much profit you could make.
Rule 14

Structure your trades through position sizing and stop losses so you never lose more than 1% of your trading capital on one losing trade.
Rule 15

Never expose your trading account to more than 5% total risk at any one time.
Rule 16

Understand the nature of volatility and adjust your position size for the increased risk with volatility spikes.
Rule 17

Never, ever, ever, add to a losing trade. Eventually that will destroy your trading account when you eventually fight the wrong trend.
Rule 18

All your trades should end in one of four ways: a small win, a big win, a small loss, or break even, but never a big loss. If you can get rid of big losses you have a great chance of eventually trading success.
Rule 19

Be incredibly stubborn in your risk management rules don’t give up an inch. Defense wins championships in sports and profits in trading.
Rule 20

Most of the time trailing stops are more profitable than profit targets. We need the big wins to pay for the losing trades. Trends tend to go farther than anyone anticipates.
Rule 21

Trade What’s Happening…Not What You Think Is Gonna Happen.” – Doug Gregory
Rule 22

Go long strength; sell weakness short in your time frame.
Rule 23

Find your edge over other traders.
Rule 24

Your trading system must be built on quantifiable facts not opinions.
Rule 25

Trade the chart not the news.
Rule 26

A robust trading system must either be designed to have a large winning percentage of trades or big wins and small losses.
Rule 27

Only take trades that have a skewed risk reward in your favor.
Rule 28

The answer to the question, “What’s the trend?” is the question, “What’s your timeframe?” – Richard Weissman. Trade primarily in the direction that a market is trending in on your time frame until the end when it bends.
Rule 29

Only take real entries that have an edge, avoid being caught up in the meaningless noise.
Rule 30

Place your stop losses outside the range of noise so you are only stopped out when you are likely wrong.

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More from @asrirangan

13 Jan
14 Signs that You're a good Trader

Good trading takes time to develop.

It is the process of pushing yourself to grow stronger and better mentally.

Here are 14 signs that you've developed into a good trader:
Sign 01

You balance discursive thoughts and emotions with mindfulness.  Good traders understand how their thoughts and emotions can influence their end results. In an effort to make the best decisions possible, they balance and temper those with moments of mindfulness.
Sign 02

You feel confident in your ability to adapt to change. Good traders know that although change is uncomfortable, it is inherent to the markets more so to life. They focus on getting better at adapting to change, rather than resisting it.
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