Trading Commandments

lesson / review

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 

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