Thread by @FT__Trading

My $10k+ months wouldn't be possible without a list of trading rules...

Here's how to create a set of trading rules in 5 easy steps: 🧵

1. Use a daily stop loss

Capital preservation is key in trading.

You need to make sure your able to trade everyday if the opportunity presents itself

Depending on how much you risk per trade, you'd wanna double it to get your daily stop loss

For example, if you risk 2% per trade then you should stop trading on the day if you lose 4% of your account

Losing 2 trades in a row can easily set you into "revenge mode" and get you to chase setups that aren't there

Make a daily stop and stick with it

2. Emotional Plan

There should be a rule in everyone's book that adheres to your emotional status.

If at ANY point you sense emotions (fomo, revenge trading, greed, etc.) you need to step away from the screens.

Either put in a rule to take a 5-10 min break or just be done trading for the day

This will stop you from blowing up your account

Let's move onto #3👇

3. Use hard stops

This rule in general will solve 90% of your problems

The second you get into a trade, your next thought should be putting in a stop loss

It's such a simple rule but will save you so much money

4. Clearly define your strategy

Having a strategy is good, but having a clearly defined one is great

You should know what exactly is needed to enter or exit a position

You should know which options to get

You should know every detail of how you are going to execute

Trading without a strategy is the same as gambling

Your better off putting your money on the jets winning a superbowl (literally)

5. Wait for your setup

Trading is a waiting game

You wait for your setups and then execute

That's all it is

If you ever find yourself scrambling through your watchlists looking for a setup, it's best to step away for the day

You don't need to trade everday

Some of the best traders I know only take a few trades a week

And are raking in millions

Make a rule that you will NOT force trades, ever.

Lastly,

write your list of trading rules down.

On paper.

Then read them every single morning before you trade

Have them infringed on the back of your brain so you'll be thinking of them while your trading

I’m writing a thread everyday in November 👀

So follow me @FT__Trading because you WON'T want to miss the one tomorrow

Also comment below other threads you want me to make!

https://twitter.com/1022819912451059712/status/1729995035553218630

Want to learn how to scale your trading to making $10k+ per month?

DM me "scale" and I'll help you out