12 Rules for Good Trading

Here are twelve great rules that can give new traders a quick list to see what the right questions to answer that will lead to good trading and also a guide to more experienced traders that just can’t get to consistent profitable trading over the long term.

1. Create your own quantified trading system with an edge that fits your own goals for potential returns and your personal risk tolerance.

2. Keep your internal mental dialogue positive using both logic and reason as your thoughts to council yourself in during your trading.

3. Only be friends with other traders that are positive and helpful in your journey.

4. Only compare yourself with your past performance not other traders. Everyone has their own goals and path.

5. Do not do anything that would hurt your confidence in your own discipline.

6. Do not concern yourself with anyone’s trading results but your own.

7. Focus on learning how to build your own trading system not following other people’s trades.

8. Always be honest with yourself about your own knowledge and understanding about trading and the markets. Confidence can only come after competence.

9. Assume you can learn one valuable trading lesson from every trader. Even if it is what not to do.

10. Be precise in your risk management but flexible in your expectations of outcome.

11. Encourage new traders to learn the importance of position sizing, entry and exit signals, and the right mindset.

12. Help new traders when you can share your own experience to shorten their learning curve.

Source: www.newtraderu.com