Trading is an art form.
1. Safety First
- 1 to 3 risk/reward ratio
- Exit once strategy fails, do not rely on hope
limit loss to 3%
- Loss is ok, boxers get hit
mitigation is key, don't get knocked out
- Stick to the plan
2. The Trend is Your Friend
- Do not fight the trend
- Focus on the long term market
day trading is less affected by the long term market
- The Golden Cross
-
- The Bearish Cross
-
3. Chop is NOT an Indicator
- Rely on patterns
4. Let The Trade Come To You
- Wait for confirmations
- Resist FOMO
- Don't chase a trade
- Control emotions and aggression
- The first entry is rarely the best
5. A Bad Strategy is Better than No Strategy
- A framework helps you learn
6. Aim Small, Miss Small
- Take profits off the table while they are still there
7. The Meat of the Move
- Do not worry about a perfect entry or exit
sell into strength