Hey 5-Star Trader,
Welcome to the new year!
As is tradition, I’m starting out 2022 reviewing my trading resolutions. One of those resolutions is to remind me of the 10 trading commandments I’ve written for myself:
- I’ll be disciplined every day, and in every trade.
- I’ll be my own trading “self,” never trading another’s plan.
- I love taking small losses.
- I’ll always earn the right to trade bigger.
- I’m not addicted to trading “just to see what happens.”
- I’ll only trade high-reward setups that have the probabilities in their favor.
- I’ll be a bricklayer – making the same types of trades over and over again.
- Once I find a setup, I don’t hesitate; once in a trade, I don’t overanalyze.
- I’ll always keep a detailed trading log/journal and will act upon what it tells me.
- I’ll review my work and shift over time to adjust for what’s working and what isn’t.
As the familiar phrase goes, “Markets can stay irrational longer than you can stay solvent.”
So, even though these commandments aren’t new to me, each year I find it important to revisit them. They remind me that trading is not a linear process. Mistakes will be made, but as long as we stick to our rules, we can overcome them!