You opened a position—and the price moved against you. You moved your stop. Added to your position to make back your losses faster. Sound familiar?
It’s moments like these that put your trading plan to the real test.
Lewis Borsellino is a veteran of Chicago’s S&P 500 futures market. In his interviews, he emphasized discipline, loss control, and the quality of executing a plan. His ten commandments remain a useful way to check your own trading habits.
Below is an adapted explanation of these principles, with practical guidance for crypto traders.
1️⃣ Trade to do quality work
The desire to “make money today at any cost” can push you into taking unnecessary trades.
Before entering a trade, ask yourself: does it fit my system? A profitable position taken in violation of your rules can reinforce a dangerous habit.
2️⃣ Stay disciplined
Define your entry and exit conditions, as well as your acceptable risk, in advance.
If your decision changes with every candle, ask yourself: are you reacting to new information or to your own fear?
3️⃣ Know your psychological limits
Your position size should let you follow your plan calmly.
If you’re constantly checking your phone and can’t sleep because of an open trade, consider reducing your risk exposure.
4️⃣ Put your ego aside
Your forecast may be wrong.
The phrase “the price has to come back” doesn’t undo a broken level or an exit condition. Accepting an unfavorable outcome is part of a trader’s job.
5️⃣ Don’t replace your plan with hope
When a trading idea is invalidated, you need to have a predefined action.
Don’t move your stop just because you don’t want to realize a loss. At the same time, remember that during a sharp move, the actual execution price may differ from the one you planned for.
6️⃣ Limit losses and manage profits
Plan your exit before opening a position.
Taking partial profits, exiting at a target, or trailing a stop can all be part of a strategy. Choose based on tested rules, not a fleeting rush of euphoria.
7️⃣ Learn to wait
Not taking a trade is a valid decision.
Missing a move doesn’t mean you have to chase the price. If your setup isn’t there, preserve your capital and attention for the next opportunity.
8️⃣ Analyze losses without blaming yourself
A losing trade doesn’t always mean you made a mistake: even a system with positive expected value has losing trades.
In your journal, distinguish between two cases: a trade taken according to the rules and a trade that broke the plan. They call for different conclusions.
9️⃣ Take a break after three consecutive losses
Borsellino suggested stopping after three consecutive losing trades.
Use the break to check your emotional state and the market context. This is a behavioral safeguard; a run of stop-outs alone doesn’t prove that the strategy has stopped working.
🔟 Stick to the unbreakable rule
The point of the final commandment is that systematically breaking the rules will eventually affect your trading results.
One successful outcome from taking excessive risk does not make that behavior right.
