My 10 trading rules

27 9 2014 - No comment

My 10 trading rules or the trader’s mantra

 The trader’s ritual

Let me share with you my 10 trading rules I read every time I go trading. These are literally my mantras; my ritual steps which make me psychologically fit to trade, and check during the day whether I am still capable of trading.

The trader’s mantra

The term mantra in Sanskrit means tool of the mind (manas) and the suffix -tra protection, hence the commonly accepted definition of protection of the mind. I use it to protect my capital from myself because I think the greatest weakness of a beginner or experienced trader (who theoretically is a master of his technique, money management, indicators etc.) is himself. We always come back to the basics; how to manage your stress, blood pressure, and how to stay lucid when trading? I therefore analyse both the price trend and the evolution of my emotional state throughout the day. If any of these things are no longer in place, I stop trading, and my day ends.

Trading rules as a way of overcoming your weaknesses

The strict application of these trading principles completely transformed my results. These rules are not exceptional or very original, but ever since I started applying them to the letter, my results are much more regular and consistent in terms of earnings. The aim is absolutely not to suggest one single framework; this is applicable to each trader. We are singular beings with our own psychological reactions, emotions, personal relationship with money, equity, etc. These rules are adapted to my personality, my trading issues, my financial strength, etc. They are psychological and technical resources I use to try to find ways of filling my gaps; avoiding repeating the same mistakes … and be among the 10% of traders who earn money regularly in the stock market.

Adapt your own rules to your trading and personality

You will identify with certain rules, others will seem absurd, but this can give you ideas and ways to create your own rules, your own personal commandments etc. At first this is difficult to think through, because you really need to look in the mirror, list all your recurring mistakes, find a way of fixing them if you cannot improve; in short do some thorough work, accept your weaknesses and see how you can accommodate them within your trading to minimize their negative impacts on your trading results. This is probably the most difficult thing to do for a trader, but it is also the most financially and personally lucrative…

List of my 10 personal trading rules:

1) Do not lose money, trading rule number 1

2) Trading rule number 2, reread rule number 1

3) Always have a backup solution, trading rule number 3

4) Only trade when in top form, trading rule number 4

5) Think for yourself, trading rule number 5

6) Control your losses, trading rule number 6

7) Do not force yourself to trade, trading rule number 7



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