10 Trading Rules

1. Accept the Loss at Entry

The moment you enter a trade, consider that money gone. This shifts your mindset from "hoping to win" to "executing a plan," which manages emotions and prevents you from "gate-keeping" or revenge trading.

2. Define Your Acceptable Risk

Always allocate a set amount you are comfortable losing before you click buy or sell. Whether it is 1–2% of your account or a fixed dollar amount, consistency in risk sizing is the foundation of survival.

3. Know How Risk Management Works 

Risk management isn't just a buzzword, it’s the distance between your entry and your stop loss. The amount you lose when that stop loss hits is your Acceptable Risk. If that number is too high, your position size is too large.

4. Practice Ultimate Patience

Trading is 90% waiting and 10% executing. You do not need to be in the market every day. Sometimes the most profitable trade you can make is staying in cash and waiting for a high-probability setup.

5. Read the Market Conditions 

Context is everything. You must identify if the market is Trending (making higher highs/lower lows) or Ranging (bouncing between support and resistance). A strategy that works in a trend will often fail in a range.

6. Aim for Long-Term Profitability

Trading is a marathon, not a sprint. Quick gains often lead to quick losses through reckless behaviour. Focus on small, consistent gains; these compound into long-term wealth.

7. Always Have a Plan 

Like your technical analysis, a trade can go awry at any moment. You must plan for every possibility: Where do I exit if I'm wrong? Where do I take profit if I'm right? What do I do if the price stalls?

8. Always Pay Yourself 

"No one ever goes broke by taking profit." When the market gives you a win, lock it in. Whether you take partials or close the full position, realized gains are the only gains that actually grow your bank account.

9. Avoid Over-Trading 

A high volume of trades does not equate to a high volume of profit. Over-trading leads to fatigue and increased commission costs. Set a daily or weekly target and stop once you've reached it.

10. Journal and Log Every Trade 

Your journal is your most honest mentor. By logging your entries, exits, and emotions, you will eventually see the "pitfalls" in your plan. If you don't track it, you can't improve it.