1. Have a trade plan. If you don’t have one, develop it – a trade plan is basically a system that tells you when to enter or exit a trade. Trade the plan with discipline. Don’t wait for confirmation other than your system.
2. Trade with the trend. Let your profits run and cut your losses – losses are harder to recover than to make a gain.
3. Buy on dips near support. Sell on rallies near resistance.
4. Don’t chase price; buying when price is extended increases your risks astronomically. If you miss it or are late, let it go. There’s always another trade.
5. Don’t force a setup or trade. If you have to make it look good, it probably isn’t. Wait for the perfect setup. You may only get two or three a day, but wait for them.
6. Develop a money management system. Do not risk more than 5% of your capital in any one trade.
7. De-leverage. The more margin you use, the more your risk. Start out slow with as few contracts as possible. Build your trading account and capital before you increase leverage.
8. Use Stop Losses to protect yourself from losing trades – Stop loss orders are useful in that they help to reduce the need to monitor the markets on a continual basis. Set a best/worst profit/loss level for each trade and stick to it. Use a disaster hard stop; and a mental close-by stop. Guaranteed stops also help to protect against gapping.
9. Be disciplined.
10. And finally take responsibility for your own decisions.
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