25 rules of trading discipline


  1. The market pays you to be disciplined.
  2. Be disciplined every day, in every trade, and the market will reward you. But don’t claim to be disciplined if you are not 100 percent of the time.
  3. Always lower your trade size when you’re trading poorly.
  4. Never turn a winner into a loser.
  5. Your biggest loser cant exceed your biggest winner.
  6. Develop a methodology and stick with it. dont change methodologies from day to day.
  7. Be yourself. Dont try to be someone else.
  8. You always want to be able to come back and play the next day. Once you reach the daily downside limit, you must turn your PC off and call it a day. You can always come back tomorrow.
  9. Earn the right to trade bigger. Remember: if you are trading poorly with two lots you must lower your trade size down to a one lot.
  10. Get out of your losers.
  11. The first loss is the best loss.
  12. Dont hope and pray. If you do, you will lose.
  13. dont worry about news. it�s history.
  14. Dont speculate. if you do, you will lose.
  15. Love to lose money. What I mean is to accept the fact that you are going to have losing trades throughout the trading session. Get out of your losers quickly. Love to get out of your losers quickly.
  16. If your trade is not going anywhere in a given timeframe, its time to exit.
  17. Never take a big loss. Only a big loss can hurt you. Please review rules #5, #8, #10, #11 and #15. If you follow any one of these rules you will never violate rule #17.
  18. make a little bit everyday. dig your ditches. don�t fill them in.
  19. Hit singles not home runs.
  20. consistency builds confidence and control.
  21. Learn to sweat out (scale out) your winners.
  22. Make the same type of trades over and over again � be a bricklayer.
  23. dont over-analyze. don�t procrastinate. dont hesitate. if you do, you will lose.
  24. all traders are created equal in the eyes of the market.
  25. Its the market itself that wields the ultimate scale of justice.
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