Golden key rules that I have learned

These are the GOLDEN key rules that I have learned along my way.

1. This is rule number one, the most important one, the hart of every trade,

CUT LOSSES QUICKLY. 

if a trade isn't going according to your plan and it has reached your stop loss you MUST take the loss and move on, you cannot let hope and greed take over you trade.


2.Enter only the BEST/STRATEGY setups that you know and master.

When you sit down and start your trading day, take on only the setups that you have learned and that you feel comfortable with, NEVER try to scalp unknown trades with unfamiliar patterns, this leads to disaster.


3.Don't force trades when there are no good trades.


Slow market days can be frustrating because you want to make money, but in these situations you MUST control your feelings and just sit back, go study, go out with friends, go wash your car, don't force trades! because sometimes you will profit but in most cases you will lose.


4.Go with your plan.

Always go with your initial plan that you had from the beginning, do exactly as you planned out, when you don't stick to your plan, you lose the big picture that you had before you saw some things happen, it changes your overview about the stock.


5.No emotions.

This is a hard one because we cannot control them, but in trading you MUST trade like a robot, you cannot let emotions come into act in a trade, when it comes to cutting losses, taking gains, or entering a trade, everything you do must have a plan.


6.Lookout for big spread.

Many times Ive entered a trade without noticing the BIG spread that made me cut the loss even before it made a move.

7.First thing you look before you make a plan is...
Watch your Risk to reward, before I enter every trade the first thing I do is looking at the risk and the reward, my risks are smart risks, not risking by $ or % but risking off major key levels on the chart.

8. Learn from your mistakes!!!

Every mistake you make is a lesson, you learn about trading everyday it never stops, don't let the losers beat you down, LEARN from them to make sure they never happen again!

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These are the main rules that I have applied to my trading strategy, Sometimes I do break the rules, but every time I do I learn from my mistakes!