Topic: trading rules
Top 38 rules of trading
1. We accumulate information—buying books, going to seminars, and
2. We begin to trade with our “new” knowledge.
3. We consistently “donate” and then realize that we may need more
knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our “updated” knowledge.
7. We get “beat up” again and begin to lose some of our confidence.
Fear starts setting in.
8. We start to listen to “outside news” and to other traders.
9. We go back into the market and continue to “donate.”
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and start to see a little progress
13. We get “overconfident,” and the market humbles us.
14. We start to understand that trading successfully is going to take more
time and more knowledge than we anticipated.
Most people will give up at this point, as they realize work is involved.
15. We get serious and start concentrating on learning a “real”
16. We trade our methodology with some success but realize that
something is missing.
17. We begin to understand the need for having rules to apply our
18. We take a sabbatical from trading to develop and research our trading
19. We start trading again, this time with rules, and find some success,
but overall, we still hesitate when we execute.
20. We add, subtract, and modify rules as we see a need to be more
proficient with our rules.
21. We feel we are very close to crossing that threshold of successful
22. We start to take responsibility for our trading results as we understand
that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our
methodology and our rules.
24. As we trade, we still have a tendency to violate our rules, and our
results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market and
28. Our trading results are getting better, but we are still hesitating in
executing our rules.
29. We now see the importance of following our rules as we see the
results of our trades when we don’t follow the rules.
30. We begin to see that our lack of success is within us (a lack of
discipline in following the rules because of some kind of fear),
and we begin to work on knowing ourselves better.
31. We continue to trade, and the market teaches us more and more about
32. We master our methodology and our trading rules.
33. We begin to consistently MAKE MONEY.
34. We get a little overconfident, and the market humbles us.
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes
boring but successful), and our trading account continues to grow as
we increase our contract size.
37. We are MAKING MORE MONEY than we ever dreamed possible.
38. We go on with our lives and accomplish many of the goals we had
always dreamed of.