2. Rules are greater than inspiration, and planning is greater than impulse
Opening a position without a prearranged plan is, in essence, gambling. The entry point, stop-loss level, target level, and maximum position size must all be determined before placing the order. Adding to a position on the fly during the session, holding on to losing trades, and arbitrarily widening stop-losses are the root causes of most account blowups. A simple, executable set of rules is far better than a wide array of technical tricks.
Opening a position without a prearranged plan is, in essence, gambling. The entry point, stop-loss level, target level, and maximum position size must all be determined before placing the order. Adding to a position on the fly during the session, holding on to losing trades, and arbitrarily widening stop-losses are the root causes of most account blowups. A simple, executable set of rules is far better than a wide array of technical tricks.
