This blog will be a list for my personal rulebook that i'm going to create and any further ideas that you guys can generate will be greatly appreciated.
Rule #1 What would Tim Sykes do?
If he was you, would he make this trade or no? I have found asking myself this question very helpful in avoiding bad trades, but I don't always ask it!
Rule#2, its okay not to trade.
I find again that I wanna be a hero, that i can trade anything, and that i'm a hotshot who should be generating trades and making money every single day. (It doesn't work that way for me atm, as I still have some learning to do before I can be a sykes dux, bob, roland, etc etc shoutout to you guys for your hard work and dedication!) I need to focus only on good trade setups that i know work for me right now until I can develop more skills to make me a much more efficient and effective trader.)
This is semi redundant with rule#2, but with the addition to patience and discipline within the trade, I find myself too profit happy and jumpy and I need to learn to relax and let the chart play out sometimes (between $DCTH and $ZN most recently I left easily over 10k on the table and only captured a fraction of the move (not the meat of the move)). I will try to experiment with instead selling half of my position when I have solid gains and letting the rest ride to let the trade be zero risk for me.
Rule#4 cut losses quickly
This is a good rule, but its not on the top of my list because I trade very scared and I have been for the most part respected it. I'm usually open to new variables that can arise within a trade, and when the facts change, change with them!! (don't be stubborn $AVEO trade for me)
Rule#5 walk away.
Sometimes, it's good to walk away from the table as you become emotional and its not good for your mind. I find myself doing this often, because I don't want to demotivate myself when I make a series of bad trades and temporarily lose interest in trading. Instead, I walk away to fight another day!
I plan to make a followup blog on what areas I think i'm good at and what areas I need to work on.
Thank you all and sorry in advance for any spelling or grammatical errors that may be in this post!