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Distilled trading rules:
- Develop a daily trading plan with targets.
- Develop a plan on entry (Starter, add prices, stop and target)
- Scale in to all trades, with room for them to go against you, no “all in”.
- Only hold winners overnight, if red or flat go into cash, start the day fresh.
- Only 0-3 trades per day, more size, less trades.
- Let yourself be wrong. (See rule 2)
- Rise early and exercise, meditate, supplement and proper nutrition.
- Number 1 goal – Build your account!
- Review at the end of every day, really take the time and focus and think.
Old Rules – Still applicable but to wide and varied.
- Be a professional.
- Cut Losses Quickly – Max $500 loss per trade
- Set hard stop at time of entry – total discipline – don’t adjust stop
- Think about risk vs reward on entries.
- If a stock is not doing EXACTLY what you want, GET OUT! Set targets and commit
- Number 1 Goal – Build your account
- Be humble
- Three consecutive losers, shutdown, review journal and 500 word blog post about what went wrong
- Sleep – treasure it, make it a tool
- Only trade if physically and mentally prepared. Sleep, supplements, workout
- Track relentlessly and review.
- Never walk away from or ignore a trade, no time, close it.
- Don’t let any trade take you out of the game.
- Try to avoid shorting in the morning, spend that time watching/planning
- Constantly be editing and refining rules.
- Be in cash as much as possible ESPECIALLY OVER HOLIDAYS/VACATIONS/DAYS OFF
- Be aggressive but quick.
- Respect the trend – Don’t short strong stocks, wait for weakness
- Treat everyone trade as its own entity, don’t let losers effect winners or winners effect losers.
- Broken rules = shutdown for the day