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Have a Business Plan
Have a business plan for tradingWrite it down & print it outHave it available for referenceStick to the planTrading is a businessPlan your work and work your plan
Set Achievable Goals
Set achievable goals Base your goals on your capitalBase your goals as a percentage of your capitalSmall monthly returns have significant effects on capital growthBe realistic
Manage Your Risk
Set risk per trade as a small percentage of your accountUse risk parameters as outlined in your business planLimit risk per trade to your comfort levelLimit total risk exposure to your tolerance level
Don't Trade Under Influence
Don't trade under the influence of any substanceDon't drink & tradeDon't trade if you are taking anything that can affect your judgement or ability to trade rationally
Don't Trade With Your Pride
Don't trade when your pride or ego are making you break your own trading rules Don't let your pride wreck your accountLeave your ego at the door
Decide Positions in Advance
Decide your position in advancePrepare your chart set-up's in advance Select the time-frame you are using for the trade and stick to itDon't change your position once the trade is active
Don't Be Greedy
Don't be greedyYour goal is to have financial success over the long-term, not all in just one trade Take your profits when the price hits your targetsCapital grows through small winners, not just the big winners
Keep a Trading Journal
Log all your tradesGo over the details of the winning set ups Go over the details of the losing set upsThe answers to your successes & failures are in the details of your own trades
Balance Opportunity & Failure
Make sure you always have at least a 1:1 win/loss trade ratioBe aware of the risks existing in every trade Don't cut your profits short unnecessarilyDon't let your losses get out of control
Learn From Your Mistakes
Know what your strengths areKnow what your weaknesses are Double-check your trades before, during & after the tradeBe willing to change
Control Your Emotions
Learn to deal with the emotions of winning and losingAccept that losses can & do happen Learn to manage consecutive losing trades Don't become an over-confident trader
Stick With One Strategy
Pick your strategy and stick with it Learn the strategy so it is second nature Practice identifying trade set-upsExamine trade losers to learn whyExamine trade winners to learn why
Don't Overtrade
Do not overtrade whatever the reasonDo not trade when you are tired Do not trade when feeling negative Do not trade when pressured for a positive result
Know What Support Is
Know what your support levels areKnow how support is identified Know where your support existsLearn methods that indicate supportHighlight support levels on your chart
Know What Resistance Is
Know what your resistance levels areKnow how resistance is identified Know where your resistance existLearn methods that indicate resistanceHighlight resistance levels on your chart
Price Goes Up
The price goes up when there are more buyers than sellersSometimes the price can spike or rally quicker than expectedSometimes the higher price is shortly lived
Price Goes Down
The price goes down when there are more sellers than buyersSometimes the price can drop quicker and further than expectedSometimes the lower price is shortly lived
Don't Panic!
DON'T PANIC!!!If you're in a bad position/trade due to a mistake or market event, don't panic Stick to your trading rules no matter what is happeningThings you don't expect, can happen
Know Your Exit Strategy
Have an exit strategyKnow when to take profitsKnow when to take partial profitsKnow when to take profits earlyKnow why & when to exit a trade earlyGrow your capital as well as your equity
Don't Be Reckless
Don't trade free styleDon't trade without your trading planDon't trade beyond safe leverage levelsDon't trade without the criteria of your set-up being fully satisfiedA small profit is much better than a large loss
Keep Weekend Exposure Low
If you have trades open over the weekend, tighten your stopsBe aware that gaps on market open can wipe out your tradesBe aware that start of week trading can be volatile to flush out positions
Balancing Risks & Rewards
Ensure at least a 1:1 win/loss ratioEnter into a trade accepting a potential loss & adjust your risk to your tolerance If you adjust the pips of stop loss, adjust your lot size to control the total risked
Never Add To Losing Positions
Don't try to average out of a trade by entering new tradesDon't add new positions to your losing positionMinimise your losses by letting it stop or exit early if conditions have changed
Don't Love Your Positions
Even if your trade is profitable, do not fall in love with your positionBe flexible with your open tradesBe open to the possibility of direction changingDon't insist “you are right” just to justify holding losing positions
Don't Keep Losing Positions
Cut your losses shortHolding losing positions is psychologically badDon't think that hoping for a reversal is going to help your positionThe longer the position is held, the less likely the original signal is still valid
Many Moves Are Meaningless
Many moves are meaninglessMany moves are very short termMany moves are over- reactions to news events Many moves are deliberate to create better buying opportunities or selling opportunities
The Trend Is Your Friend
The trend is your friend until the endOnce the trend has ended, be accepting of no-trade consolidation periods before tradingWait for the restart of the trend or for a reversal sign of a new trend
Know Your Trading Sessions
Know when the main trading sessions are and how they may affect your positionsEnter and exit trades relative to the main trading sessionsBe aware of volatility during the market session crossovers
Trading Is Not Gambling
Do not gamble with your tradingGambling is bettingTrading is a businessTrade to win and only trade when all trade criteria is correctOnly focus on high probability trade opportunities
Don't Revenge Trade
Don't trade with revenge as your motivationYou can't get it backThe market is always rightWait for the next good trade set upDon't rush your next trade
Don't Take Bad Trades
Don't trade every trade set-upEliminate trades that do not fulfill all your criteriaOnly focus on good trade set-upsAvoid low-probability trade set-upsDon't rush trades. There are always new trades around the corner
Keep It Super Simple
Always KISS Trade (Keep It Super Simple)Don't complicate your trading systemDon't use too many indicatorsDon't juggle between too many time-framesStick to your strategy
Price Moves to the Middle
If price is at extremes, it will typically move back to the middle of it's trading zone The price will always move in cyclesDon't rush to catch price movesWait for high-return opportunities
Research Your Market
Gather data on the market you are tradingBe aware of market news or events that can have unexpected consequences to your currency pairsLog all your trades
Be Confident
Know your business trading planKnow your strategyKnow your indicatorsKnow your softwareKnow your market Be confident when entering trades
Trading is Not Get-Rich-Quick
Trading is not a get-rich-quick scheme Slow & steady wins the raceNever trade more than a set percentage of your accountDon't force winnersDon't over-leverage
Trade Rationally
Think about what you're doing & whyDon't get angry with the marketDon't let desire for big trades cloud your judgementNever underestimate the potential of a move against you
Don't Chase Money
Don't chase tradesDon't chase profitsDon't try to pick bottomsDon't try to pick topsDon't guess why a move is occuringDon't insist on your profit target needing to be hit
Learn to be Patient
Don't be impatientDon't be in a rush to lose moneyDon't be in a rush to execute new tradesWait for the bar close before entering tradesDon't guess where the bar will close
Don't Overwatch Trades
Don't overwatch trades Don't 2nd-guess every move of the tradeDon't focus on the price until the bar closes“Close is King”
Know Your Trading Platform
Know your trading platformKnow how to add & modify stopsKnow how to add & modify targetsKnow all the main shortcuts of the trading platform
Don't Lie to Yourself
Don't lie to yourselfLearn from your experiencesLearn from your successesLearn from your failuresLook at the result of every trade with eyes wide openBe truthful to yourself
Focus on Your Trades
Focus 100% on your tradingFocus on your entryFocus on your exitFocus on the trade scenarios and what actions you need to take for each scenarioFocus on your daily, weekly & monthly trade results
Understand Volatility
Pay attention to the market data and what drives volatilityUnderstand that what goes up can go downUnderstand that what goes down can go upBe aware of moves from the day's press releases & events
Don't Take it Personally
Don't take trading personallyIf you can't let go of a negative experience, take time off before trading againThere is no conspiracy against youDon't trade if you can't trade objectively
Have a Limit
Limit how many trades you take in one dayLimit your losses per day before trading againMake a rule of how long you need to wait before trading again after hitting your limitHave a weekly loss limit so you don't continue to trade that week
A Zero Sum Game
Trading is a zero-sum game For every winner, there is a loserOnly one position is the winning position for the current sessionYou are either going to be on the winning side or the losing side
Stick To Your Rules
Keep a Rule Book for your trading rulesKeep archives of your trading rules so you can refer to themInclude amendments in your Rule BookReview your Rule Book regularly and base amendments on your results
Educate Yourself
Always be open to new conceptsInvest in yourself with continuing educationVisit forums which have traders with like-minded goalsBe a Trading Geek and learn as much as you can
Don't Demo Trade Forever
Don't demo-trade foreverConsider trading with real money when you are confident with your demo tradingAdjust the trading lots traded to suit your real-money account
Be Consistent
Keep every part of your trading consistentKeep your stop losses consistentKeep your take profits consistentKeep your trading lots consistentKeep your trading strategy consistent
Attitude Is Everything
Only trade when you have a good attitudeFocus on your positive personal relationshipsCheck your emotional state before you tradeKeep a winner's attitude regardless of having a winning or losing dayMaintain your health
Determine Your Success
Decide what it will take to achieve successDetermine what you need to do to remain successfulQuantify success for your own trading life based on the time and the capital you can devote to your trading
