Craft Your Trading Credo

I was digging through some old trading notes and these cropped up.

1. Manage that risk – Mess this up and it doesn’t matter how good your trades are…
2. Remember this is one day out of thousands – No need to be so worried about today, relax. Nothing happening? Walk away.
3. If in doubt, stay out – You want the play to jump out at you, no squinting at the screen to make it work!
4. When you get that feeling, swing – Don’t be scared of size (Within your rules), swing the bat when it’s the right ball.
5. Don’t let the markets rule you – Respect the market, but don’t let it become your boss. You decide when to trade, you choose when to look, and you decide on the price to execute at. Stay in charge.

Today, think about what 5 trading rules you want to live by.

5 is a perfect number.

Keep them broad (ie, not ‘when this candle does this, take this trade’) these are meant to be guidelines, almost a philosophy to live by.

Just enough to keep every trading decision you make a small nudge towards your goals…