My personal collection of trading guidelines, rules for consistent and disciplined trading.
Before Entering the Trade:
- Had sleep for 7Hours? Yes or No?
- Check for market holiday at the beginning of the month.
- Note down important news and event dates.
- Analyze the global markets and create a report.
- Be neutral minded before market opens.
- I will not enter the market with quick rick mindset.
- Create a timetable for whole day and set a timer for my trading hours to stay focused.
- Create a watchlist to track down global market indexes on investing.com.
- I should set realistic expectation goals for each day and avoid greed.
- To get a view the clear trend, I should always use top to down analysis using multiple time frame.
- Keep drawings ready (HTF & LTF Zones) on the chart the day before.
- I should keep my charts clean and organized without overloading it with indicators.
- I will stick to the same strategy for at least 20 trades before evaluating it and prepare a report.
- I will not listen and not relay on other user’s tips and analysis.
- No matter what, I should plan my own trade and trade that plan only.
- I will not trade without a proper plan and setup and randomly.
- I am not here to do recovery trade instead I will trade just like a new trade.
- If I feel revenge and emotional, I will not trade and close the system fast no matter what.
- I will never take loan again in life to trade. I can’t trade with this burden.
During the Trade:
- Observe the market behavior for 15~20 minutes before entering the trade.
- I will follow the major trend trades & not trade against the trend. I am not an institution/I can’t move prices.
- I will trade only on my setup and plan and not on conviction. Be neutral.
- I will not talk with anybody and be cool minded to avoid adrenaline rush in my body.
- I will not trade during slow periods until a clear trend is established.
- I will not increase my position size in any condition. (Profit or Loss.)
- I will limit myself to two trades per day no matter what.
- I will trade only with stop loss, or I will not trade. Please don’t repeat it.
- I will only enter trades when the price aligns with my setup, and I will always use a strict stop-loss and target.
- I will not chase the trade after missing the ideal entry point. Market is not going anywhere.
- I will not look at the P&L of a live trade until the target is achieved and the trade closed.
- I will not firefight with the market and be thankful to market.
- I will not use martingale (Doubling) on any profit or loss trades. No means No.
After the Trade:
- I must write the trade journal asap because I may forget what fear, emotions I came across while managing the open position.
- I should analysis the closed trade and figure out the edge (structure clue)- why it ended in Profit/Loss or vice versa.
- I will not share my Profit or Loss screenshot with my friends. (Strictly follow no matter what.)
- I will not discuss anything with my friends about these trades because this trade is my hard work & my mindset. Discussing may result in losing my trust towards my own setup.
- I will a note of why that trade didn’t work out & work on it until I find the root cause. Analyze it with the past trades and candle structures.
- After three consecutive trade loss, I will stop trading & take a break. I will only take next set of trades until I figure out, note down the cause & fine tune it.
- I will not withdraw until I create a buffer profit of 10% of the account balance to safeguard the capital. There is no need to rush, Rome wasn’t built in a day.
- I will not blame anyone or external factor if I took a loss. It is only my fault.
Mentally & Physically Prep:
I need to avoid big loss at any cost & I will be still end in profitable month. So, I will still stay in the game and will not blow my account. (Logic: A person who is still in the game with no profit & loss is still profitable in a long run. Because trading is like marathon, not a sprint.)
| Big Profit | |
| Small Profit | Small Loss |
I will calculate profit & loss in terms of (Percent or ROI) only and always note down like that only. I will not use numbers.
I will trade only those quality setups that I have backtested and have taken real trades on, rather than focusing on the quantity of trades. I must also accept that losses are a part of trading, but they should be calculated losses incurred on quality setups.
I should prepare my trading strategy in such a way that I dig deeper not broader. Full focus on the process not the profits and must be consistent. Daily 1% learning rule.
I will maintain proper sitting posture while trading to avoid fatigue, distraction and maintain focus.
If my legs are shaking, it means I’ve broken the rules and taken a random trade. I need to stop shaking and repeat these affirmations:
- I believe in my setup because I know the outcome.
- I trust my trading plan because I built it & it can’t cheat on me.
- I must stay calm and relaxed, let the market decide because my body reacts faster than trades.
If my stop-loss is hit. I accept it. I will review why and improve my stop loss placement carefully same day.
Remember, Don’t Trade like this:
One candle trade is a gambling for me. I will not trade like this.
Treat news trade just as a normal trade, just get out fast when the momentum is over in that single big candle. Don’t re-enter and kickout the FOMO. So, I better not trade on news events.