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The Market pays you to be disciplined
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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% of the time
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Always lower your trade size when you are trading poorly
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Never turn a winner into a loser
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Your biggest loser can’t exceed your biggest winner
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Develop a methodology and stick with it. Don’t change methodologies from day to day
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Be yourself. Don’t be someone else
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You always want to be able to come back and play the next day
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Earn the right to trade bigger
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Get out of your losers
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The first loss is the best loss
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Don’t hope and pray. If you do, you will lose
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Don’t worry about news. It’s history
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Don’t speculate. If you do, you will lose
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Love to lose money. Accept the fact and get out quickly.
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If your trade is not going anywhere in a given time frame, it’s time to exit
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Never take a big loss. Only a big loss can hurt you
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Make a little bit every day. Dig your ditches. Don’t fill them in
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Hit singles not home runs
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Consistency builds confidence and control
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Learn to scale out your winners
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Make the same type of trades over and over again – Be a bricklayer
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Don’t over-analyze. Don’t procrastinate. Don’t hesitate. If you do, you will lose
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All traders are created equal in the eyes of the market
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It’s the market itself that wields the ultimate scale of justice
You must learn to respect the market. The market will mercilessly punish you if you do not play by the Rules. Learn to condition yourself to play by the 25 Rules of Trading Discipline and you will be rewarded.
Mat Cendana
Great tips here. Thanks.
2012-07-26 23:30