These are the rules that will help you survive the market, built on experience paid for in blood and bankruptcy.
1) Stop adding to losing trades.
Throwing good money after bad is how you go broke. Period.
2) Always have an exit plan.
Trading without a stop-loss is just gambling with your life savings.
3) Kill your losses fast.
Don't overthink it. If it’s red, cut it and move on.
4) Let your winners ride.
You don’t get rich on small wins; you get rich by staying in the big ones.
5) Wait for the market to prove you right.
Your "gut feeling" doesn't matter until the price starts moving.
6) Hope is a death sentence.
If you’re "hoping" a stock bounces back, you’ve already lost.
7) Don't bet the farm.
You can't make a comeback if you don't have any chips left.
8) Don't fight the trend.
Swimming against the current will only drown you.
9) Sit on your hands.
Once you're in a winning trade, the hardest (and most profitable) thing to do is nothing.
10) When in doubt, stay out.
If the chart looks like a mess, doing nothing is the smartest trade you can make.
11) Only go bigger when you're winning.
Scale into strength, never into weakness.
12) Guard your cash like your life depends on it.
Because in this game, it actually does.
Every single one of these rules was paid for with a blown account and a lot of sleepless nights.
