Here is the article.
#TradingCheckList #RiskManagement #5-3-1Rule #1PercentRule #90PercentRule #No1RuleOfTrading #RuleOf20 #50-50Rule #TradingRules #MyRules #531Rule #5050Rule #TradingRules
A trading checklist is a predefined set of criteria a trader uses to evaluate potential trades, ensuring alignment with their trading plan and risk management strategies.
The 5- 3- 1 rule in trading stands for analyzing 5 indicators, considering 3 different time frames, and focusing on 1 particular trading opportunity to minimize risk and enhance decision-making.
The 1% rule for traders dictates that no more than 1% of a trader's capital should be risked on a single trade, promoting long-term sustainability by managing potential losses.
The 90% rule in trading suggests that 90% of your trading success is due to psychological factors and discipline, while only 10% relies on technical analysis and strategy.
The No 1 rule of trading emphasizes the importance of a well-defined trading plan, guiding traders to make decisions based on logic rather than emotion, crucial for consistency.
The rule of 20 in trading advises traders to not have more than 20% of their trading capital exposed in the market at any given time to manage risk effectively.
The 50 50 rule in trading refers to the understanding that, despite thorough analysis and a solid trading plan, the outcome of any trade has an inherent 50% chance of success.
Julia's notes:
- Be a trader following rules first
- I have to discipline myself first, following the above rules - 1% rule for traders
- 1% rule for traders - set stop loss - 1%
- Forget those big loss on SABR stock, I need to learn how to make money on other stocks first; I will go back to work on risky stock like SABR later
- Try to memorize those rules - 6 rules, rules about risk management, percentage in the market, technical analysis and chance of success - inherent 50% chance of success
- First rule to follow - 1% rule for traders - no big bet - change my behavior
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