For everyone who is engaged in trading, a very important topic is rules
Despite the fact that the rules are individual for everyone, in principle, the rules are common to everyone and are mostly related to risk management
Only risk management - can prevent the loss of money even if you chose the wrong direction, opened a position at a level that did not allow the position to quickly transition to profit
That is why the rules must be clearly defined and following them should be like religious fanaticism
For example, I will give my rules, which in general are no different from those already known to everyone
- Using 2% of capital for trading on a futures account
- Opening a position no more than 5-25% of the amount on the futures account
- Setting a stop
- Setting limits to reduce the position on ROI or marked levels
- Moving the stop to breakeven after see ...%ROI in profit
- Transfer profit from the position to the Earn account
- One, maximum 3 openings of a position per day
- Do not open a position, if there are no conditions, fractal, the price has not reached the marked levels
vs.
Violation of even one rule can be critical
How to train yourself to follow the rules?
Every morning I play in my imagination how I open a position, where I open a position, at what time I open a position, how I set a stop, how I reduce the position and transfer the profit, what I do if I have a loss, how I react
In this way I train myself to take the right actions during trading - a kind of trader's meditation
Playing in your imagination the whole process with the rules will prepare you for action in reality, reduce stress and form the habit of automatically performing the right actions
During trading, when it is necessary to analyze the situation on the market, be attentive, track the price and position, monitor several charts, make a decision to open/close a position - all the rules should be followed automatically by you, it should become a habit that does not need to be controlled - just like the habit of brushing your teeth - no one forces us, but we want and need it