TRADING PSYCHOLOGY
10 RULES
1-Never trade so big that you end up watching every price tick even though you are not a day trader.
2-Don’t trade so big you dramatically increase your pulse rate or get the sweats.
3-Each trade should only be one of your next one hundred. Never risk more than 1% of your trading account on one trade based on your stop loss.
4-Don’t spend time obsessing over market hindsight. All you can focus on is following your plan in real-time.
5-Forget about your last trade and focus on your next trade.
6-Losses should be lessons that you paid to learn. Look at drawdowns in capital as tuition and not failure.
7-If you followed your trading plan, your loss is just part of the process to get to profitability. Think long term.
8-Position sizes can’t be so large that they compromise your emotions and distract you from your trading plan.
9-Don’t revenge trade to attempt to recover your losses. Stick to your trading plan no matter what.
10-Your signals have to be based on price action and not greed, fear, or your ego.