20 Rules of Ezee Trading

1. Trading can be straight forward, but at the same time, it still requires discipline. Leave your gambling instincts behind and stick to your rules.



2. Novice traders turn into professional traders when they stop looking for the Holy Grail and focus on controlling risk.



3. Be optimistic when you gut is pessimistic and pessimistic when your gut is over-excited.



4. Don’t overtrade. Be like a surfer waiting for the right wave to come along. Patience is one of the greatest strengths a trader can have.



5. Focus on the setups, not the money. Losers think about how much they can win. Winners concentrate on how much they could lose. Focus on the setups and the profits will take care of themselves.



6. Stay in winning trades as long as you can. Let your stops take you out.



7. Use of correct money management is the key to success. Without it, even the best system is likely to fail.



8. Don’t be a fear based trader or a greed based trader. Fear based traders are so fearful of taking losses, they miss out on great trades. Greed based traders are gamblers and are likely to ignore money management rules. Be somewhere in between, respectful of the markets but ready to pull the trigger without hesitation when necessary.



9. Never, under any circumstances add to a losing position.



10. Trade like a guerrilla. Fight on the winning side but willing to switch allegiances if circumstances change.



11. If you buy breakouts, be aware that professional traders are probably the ones selling the stock to you!



12. Sell markets that show the greatest weakness and buy those that show the greatest strength.



13. For a trader, understanding mass psychology is probably more important than understanding economics.



14. Discipline is not often learned until a new trader has lost enough money to feel the pain. Until you have felt this pain, you believe big losses can’t happen to you and that can bring about a false sense of confidence.



15. Trade the facts in front of you, not what you think is going to happen.



16. Never risk more than 1-2% on any single trade



17. You cannot predict the future. Always remember, anything can happen.



18. You don’t need to know what’s going to happen in the future to make money.



19. There is a random distribution between wins and losses. You have to understand the probabilities.



20. All rules are meant to be broken. The trick is knowing when and how infrequently this rule may be invoked!