Psychology & Risk Management For Traders

1.     I keep Blue Channels turned off while trading.

2.     I do not care about others opinions I care only about price and chart action.

3.     I do not try to predict, instead I trade in accordance with the chart.

4.     I am not trying to prove I am right I am trying to make money.

5.     I am not trading for ego gratification I am trading for money.

6.     I am not trying to be the genius who calls a top I am the trend follower who follows a trend all the way up until it ends.

7.     I admit freely to my losing trades along with my winning trades.

8.     I do not get emotionally attached to each price movement throughout the day.

9.     I have faith in my rules, methodology and system.

10.  I understand it that it is the market conditions and not me that creates profits.

RISK MANAGEMENT

1.     I never add to a losing position.

2.     I carefully control position sizing to limit risk based on volatility.

3.     I attempt to never lose more than 1% of my capital on any one trade.

4.     I trade smaller when volatility is high.

5.     I have stale stops and sale positions that do not trend in four days after entry.

6.     I quickly sell losing trades when my stop is hit.

7.     I sell stocks when they close in the bottom of the day’s range.

8.     I never expose more than 6% of my capital to possible loss at any one time.

9.     Risk is priority #1, profits are #2.