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I believe setting your personal “Trading Laws” can help you become an overall better, disciplined and successful Trader.
And providing you set some solid laws, that cover important technical and psychological aspects of trading, then your trading can potentially gain you more successes than failures, as a result, transforming you into a consistent, profitable, successful trader.
With that said, here’s my own initial Trading Law, I’ve set myself. It’s not perfect but it’s a start, and I aim to improve it along the way, as I see the need to.
I’ve created these laws based on my personal experiences of Trading, and to help me to overcome and “fix” my areas of weaknesses and improve my general trading practices.
I, SAEED KHAN SOLEMNLY MAKE A COMMITMENT TO MYSELF TO STRICTLY ABIDE BY THE FOLLOWING TRADING LAWS, EVERY TIME I TRADE THE FINANCIAL MARKETS.
- I WILL ALWAYS PLACE A STOP LOSS ON ALL MY TRADES
- IF I LOSE MORE THAN 3 TRADES IN A DAY, I WILL STOP TRADING FOR THE DAY.
- IF I LOSE MORE THAN 5% IN CLOSED TRADES, OF MY ACCOUNT BALANCE IN A DAY, I WILL STOP TRADING.
- I WILL ONLY TRADE AFTER THE NEWS EVENTS
- I WILL TRADE ACCORDING TO A PROVEN STRATEGY AND NOT BY LUCK OR GAMBLING.
- I WILL STRICTLY FOLLOW THE STRATEGY AND ITS RULES.
- I WILL NEVER, EVER REVENGE TRADE AFTER EXPERIENCING LOSING STREAKS TO RECOVER MY LOSSES.
- I WILL ONLY RISK UP TO 2% OF MY ACCOUNT BALANCE PER TRADE.
- I WILL ONLY RISK MONEY, I CAN AFFORD TO LOSE
I MAY AMEND AND UPDATE THESE LAWS AT ANY TIME IN ORDER TO IMPROVE MY TRADING PROCESS.