A) Capital & Risk Management (Survival First)
1. Use Capital You Can Afford to Lose
Think of leveraged funds as dead money — if you lose them, your life shouldn’t break. This is non‑negotiable.
2. Keep Position Size Small (1–2% Risk per Trade)
Professional traders risk a small percentage of their account per trade, so a string of losses won’t blow up the account. A common guideline is risking 1%–2% per trade.
3. Don’t Commit More Than ~10% of Total Portfolio to Active Leverage
Total open leverage exposure should remain a small fraction of your capital — around 5–10% total risk across all positions.
4. Avoid High Leverage Early On
For beginners, using high leverage (like 50x or 100x) often equals gambling, since small price swings can liquidate positions quickly. Many pros stick to 2x–5x leverage until they build consistent edge.
B) Orders & Execution Discipline
5. Always Set a Stop‑Loss Before Entering
A stop‑loss protects capital and removes emotional judgment once the trade begins. Never trade without it.
6. Define Take‑Profit Targets (and Use Them)
Locks in gains and prevents wins from turning into losses. Without pre‑defined exits, markets can reverse suddenly.
7. Know Your Liquidation Price
Before placing a trade, calculate where you would be liquidated based on leverage and volatility. If it’s too close to current price, consider reducing leverage.
8. Use Trailing Stops When Profitable
As a position moves in your favor, a trailing stop helps lock profits while giving the remaining position room to run.
C) Market & Strategy Discipline
9. Trade With the Trend, Not Against It
Counter‑trend trading with leverage is riskier — markets can squeeze leveraged traders violently.
10. Only Trade Setups You Understand
If you don’t understand why price should move in a direction (technical or narrative reasons), don’t trade it.
11. Avoid “New Pair / Thin Liquidity” Traps
New or low–volume pairs often see erratic spikes that can trigger stop‑losses and liquidations easily.
D) Psychology Rules (Crucial)
12. Don’t Revenge Trade
Trying to “win money back” after a loss causes bigger risks and often bigger losses.
13. Kill FOMO (Fear of Missing Out)
Just because an asset pumped already doesn’t mean there’s a safe entry — FOMO leads to bad timing and poor risk/reward.
14. No Trades Under Personal Financial Pressure
If you need a trade to fund bills or obligations, step away — desperation drives bad decisions.
E) Greed‑Control Rules (Core)
These echo and expand your original Rules 15–19, but are backed by consistent risk principles:
15. Don’t Be Greedy — Take Profits When You Have Them
Holding too long for “more” often turns winners into losers.
16. Don’t Use Maximum Leverage Just Because You Can
Higher leverage = tighter margin for error. Use only what your strategy requires.
17. Exit Winners if They Reverse Toward Loss
Greed keeps traders in positions past logical thresholds; respect your profit or stop limits.
18. Always Respect Stop‑Loss Levels
Moving or cancelling stops because price “might come back” exposes you to larger drawdowns and liquidation.
19. The Market is Always There Tomorrow — Keep Your Capital
The hardest rule: preserve money first, profit second. Without capital, future opportunities are lost.
F) Operational & Long‑Term Game Rules
20. Document Every Trade (Trade Journal)
Track entries, exits, emotions, reasons — journaling turns randomness into a learning process.
21. Adapt Leverage to Market Environment
In extremely volatile markets, reduce leverage rather than maintain high levels.
22. Understand Margin Modes
Isolated margin limits risk to a single trade; cross margin spreads risk across your account — choose wisely based on strategy and experience.
Summary -The Core Takeaways
Risk management > prediction.
• Protect capital first.
• Trade only when the setup, risk and psychology align.
• Use leverage conservatively and with strict controls.
• Don’t let greed or emotion drive leverage decisions.
These updated rules combine your personal lessons with well‑recognized industry risk practices that pro traders follow. Following these dramatically reduces the chance of blowing up your account compared to random high‑leverage gambling.
