15 Points For Traders

1. Don’t be a tradeaholic
Agreed
2. You trade to make money – not for fun, games, or to escape boredom
Definitely
3. Never add to a bad trade
If you have a specific strategy which includes adding to a trade which has gone against you, that’s one thing. Just “averaging down” is usually a bad play.
4. Once you have a profit on a trade, never let it turn into a loss
This can be a really good plan for psychology purposes, but it may or may not be appropriate for the type of strategy/system you employ.
5. No hoping, no wishing, no would’ve, no opinions, no should’ve
It’s hard not to second-guess, and reviewing thinking after the fact is part of the learning process, but never do it in trade.
6. Don’t be a one way trader – be flexible, opportunities on both sides
More opportunities doesn’t necessarily mean better trading. Some systems, markets, and/or traders are just better one-way only.
7. Know your risk on each trade. Trade with stops to limit losses
Definitely yes on the first part. The second part is up for debate in some ways.
8. Look for 3-1 profit objective trade
Totally disagree. This can’t be taken in isolation. You can have fantastic results with a smaller R/R ratio. It depends on your system’s or method’s win %.
9. When initiating a trade, always get your price (use a limit order)
Depends on your system.
10. When liquidating a bad trade, always use a market order
Hard to disagree with.
11. Have a plan. Trade it. Monitor it.
Absolutely
12. Make 10 points on a million trades, not a million points on one trade
This is the difference between trend trading and other types. In trend trading you are going for infrequent big wins.
13. Learn from your own mistakes
Goes without saying.
14. Pay attention to weekly lows and highs
Again, depends on your trading system or methodology, but often useful.
15. Technicals and fundamentals are equally important
Depends on time frame.