These are 30 golden rules for trading, and you can consider them your personal “constitution” before you start trading for real.
🟢 First: Capital Rules
1. Capital is more important than profit.
2. Don’t risk more than 0.5%–1% of your account on a trade.
3. Set your maximum daily loss in advance, such as 2%.
4. Don’t use all your capital in a single trade.
5. Don’t double your trade size to make up for a loss.
6. Don’t borrow money to trade.
7. Don’t trade with money you need for essential expenses.
🔵 Second: Entry Rules
8. Don’t enter a trade without a written plan.
9. You should know why you’re entering before you click the button.
10. Set your stop-loss and target before entering.
11. Don’t enter a trade out of fear of missing out (FOMO).
12. Don’t chase the price after a strong move.
13. If your strategy’s conditions aren’t met, don’t enter.
14. Don’t let a large number of indicators replace understanding price action and the market.
🟠 Third: Trade Management Rules
15. Don’t widen your stop-loss because you don’t want to exit at a loss.
16. Don’t turn a short-term trade into an investment because it’s losing.
17. Don’t move your target arbitrarily out of greed.
18. Don’t add to a losing trade unless you have a tested strategy that allows it.
19. Aim for a reward-to-risk ratio that suits your strategy, such as 1:2 when market conditions allow.
20. Don’t let one trade affect your subsequent decisions.
🔴 Fourth: Psychological Rules
21. Don’t try to get revenge on the market.
22. After a losing streak, stop and review your performance.
23. After a winning streak, don’t increase your risk because of overconfidence.
24. Don’t trade when you’re angry, afraid, or stressed.
25. Accept that losses are a normal part of trading.
26. Don’t compare yourself to a trader showing off their profits online; you don’t necessarily see their risks and losses.
🟣 Fifth: Professionalism Rules
27. Record every trade in a trading journal.
28. Evaluate your strategy after a large number of trades, not after 3 or 5 trades.
29. Always calculate expectancy, win rate, average profit, average loss, and maximum drawdown.
30. Don’t look for quick profits; look for a system you can stick to for years.
⭐ One Very Important Final Rule
If you have a $1,000 account, don’t make your first goal to quickly turn it into $2,000.
Make your first goal:
$1,000 → Preserve capital → Gain experience → Prove a strategy is statistically profitable → Then gradually increase capital.#BinanceLaunchesBinanceIntelligence