20 Trading Lessons That Every Trader Learns The Hard Way 🧵
1/ Never risk more than you can afford to lose
No single trade should ever be big enough to take you out of the game.
You should be able to be wrong 20-30 times in a row and still have capital left.
Size kills more traders than bad entries.
No single trade should ever be big enough to take you out of the game.
You should be able to be wrong 20-30 times in a row and still have capital left.
Size kills more traders than bad entries.
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You're going to need it.
Let's continue
2/ Never trade when emotionally compromised
Sleep-deprived, angry, or tilted? Step away.
Decision fatigue has ended more trading careers than market crashes.
Your brain is your most important trading tool - keep it sharp.
Sleep-deprived, angry, or tilted? Step away.
Decision fatigue has ended more trading careers than market crashes.
Your brain is your most important trading tool - keep it sharp.
3/ Never enter without knowing your exit
Define your stop loss, take profit, and time-based exit before you click buy.
The last moment of objectivity is before you place the trade.
Once you're in, admitting you're wrong becomes exponentially harder.
Define your stop loss, take profit, and time-based exit before you click buy.
The last moment of objectivity is before you place the trade.
Once you're in, admitting you're wrong becomes exponentially harder.
4/ Never chase losses with bigger bets
After a bad loss, the temptation is to "make it back" with one big trade.
This is how good traders become broke traders.
Take a break. Reset. Come back with your original size.
After a bad loss, the temptation is to "make it back" with one big trade.
This is how good traders become broke traders.
Take a break. Reset. Come back with your original size.
5/ Never trade without a defined edge
If you can't explain your advantage in one sentence, you're gambling.
"Price is going up" isn't an edge—it's hope with extra steps.
No edge = no trade.
If you can't explain your advantage in one sentence, you're gambling.
"Price is going up" isn't an edge—it's hope with extra steps.
No edge = no trade.
6/ Never fight the primary trend
The trend is stronger than you, your opinion, and your account balance combined.
Adapt to what the market is doing, not what you think it should do.
Swimming against the current is exhausting and expensive.
The trend is stronger than you, your opinion, and your account balance combined.
Adapt to what the market is doing, not what you think it should do.
Swimming against the current is exhausting and expensive.
7/ Never break your own rules
Your trading rules exist because of painful lessons learned.
The moment you think "just this once," you open the door to chaos.
Discipline isn't negotiable—it's the only thing that keeps you alive.
Your trading rules exist because of painful lessons learned.
The moment you think "just this once," you open the door to chaos.
Discipline isn't negotiable—it's the only thing that keeps you alive.
8/ Never trade your P&L
Focus on what the market is telling you, not what your account balance says.
Chasing losses or protecting profits clouds judgment and destroys execution.
Trade the setup, not your emotions about money.
Focus on what the market is telling you, not what your account balance says.
Chasing losses or protecting profits clouds judgment and destroys execution.
Trade the setup, not your emotions about money.
9/ Never assume liquidity will be there
The exit door is always smaller than you imagine, especially when you need it most.
Plan for the worst-case scenario because that's usually when you'll need to exit.
The exit door is always smaller than you imagine, especially when you need it most.
Plan for the worst-case scenario because that's usually when you'll need to exit.
10/ Never average down on invalidated trades
When your thesis is wrong, you're wrong.
Adding to losers turns manageable mistakes into account killers.
Cut the loss and move on to the next opportunity.
When your thesis is wrong, you're wrong.
Adding to losers turns manageable mistakes into account killers.
Cut the loss and move on to the next opportunity.
11/ Never trade during major news without a plan
FOMC meetings, earnings, geopolitical events create chaos.
If you don't have complete control over the situation, don't trade it.
Sitting out is a position too.
FOMC meetings, earnings, geopolitical events create chaos.
If you don't have complete control over the situation, don't trade it.
Sitting out is a position too.
12/ Never let ego keep you in bad trades
The market doesn't care about your pride, your reputation, or your public predictions.
Being wrong is temporary. Being stubborn is permanent.
Cut losses without hesitation.
The market doesn't care about your pride, your reputation, or your public predictions.
Being wrong is temporary. Being stubborn is permanent.
Cut losses without hesitation.
13/ Never mistake activity for productivity
There's no prize for most trades executed—only most profitable trades.
Sometimes the best trade is no trade.
Preserve capital for when the odds actually favor you.
There's no prize for most trades executed—only most profitable trades.
Sometimes the best trade is no trade.
Preserve capital for when the odds actually favor you.
14/ Never trade on borrowed conviction
If you're following someone else's signals, you don't know their exit plan, risk tolerance, or when they're wrong.
Build your own system. Trust your own analysis.
If you're following someone else's signals, you don't know their exit plan, risk tolerance, or when they're wrong.
Build your own system. Trust your own analysis.
15/ Never ignore what price is actually doing
Your fundamental analysis might be perfect, but if price disagrees, price is right.
When the market reacts opposite to your expectations, listen to what it's telling you.
Your fundamental analysis might be perfect, but if price disagrees, price is right.
When the market reacts opposite to your expectations, listen to what it's telling you.
16/ Never assume your edge is permanent
Markets evolve. What worked last cycle may be useless in the next.
Stay paranoid about your methods. Keep testing, keep adapting.
Complacency kills profitable traders.
Markets evolve. What worked last cycle may be useless in the next.
Stay paranoid about your methods. Keep testing, keep adapting.
Complacency kills profitable traders.
17/ Never judge trades solely by outcomes
Good trades can lose money. Bad trades can get lucky.
Focus on whether you followed your process, not whether you made money.
Process over profits, always.
Good trades can lose money. Bad trades can get lucky.
Focus on whether you followed your process, not whether you made money.
Process over profits, always.
18/ Never trade when your thesis is invalidated
Hope is not a trading strategy.
When the facts change, change your position immediately.
Holding onto dead trades is expensive stubbornness.
Hope is not a trading strategy.
When the facts change, change your position immediately.
Holding onto dead trades is expensive stubbornness.
19/ Never forget that survival comes first
You can't make money if you're not in the game.
Protecting capital is more important than generating returns.
Live to trade another day.
You can't make money if you're not in the game.
Protecting capital is more important than generating returns.
Live to trade another day.
20/ Never underestimate the power of stepping away
If you're in a losing streak, liquidate everything and take a break.
Mental capital is just as important as financial capital.
Sometimes the best thing you can do is nothing.
If you're in a losing streak, liquidate everything and take a break.
Mental capital is just as important as financial capital.
Sometimes the best thing you can do is nothing.
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