Evolvers are always asking me … what rules do I follow as a trader?
Over my many years in the markets, I’ve developed certain trading pillars that I try to follow most of the time.
And when markets are as volatile as they are today, with the S&P 500 ETF Trust (NYSEARCA: SPY) down 1.42% at the time of writing, your trading rules can potentially save you.
My rules are foundational to my trading. Reminding myself of them helps me to stay focused and keep my head in the game.
I learned most of these rules from my mentor, Tim Sykes, while there are others I’ve come up with on my own over the years.
That said, there isn’t one rule that always applies to every setup.
Because of the ever-changing nature of stocks, sometimes you need to focus on Setup A in a much different way than you approached Setup B.
But even considering this, there are three key rules that I always trade by no matter what.
Keep reading and I’ll tell you all about them…
Rule #1: Cut Losses Immediately
I’m usually dead serious about following Tim Sykes’ #1 rule — cutting losses immediately.
I first learned the importance of cutting losses quickly in Sykes’ Trading Challenge (where I learned practically everything I know about trading).
I also met my buddy Tim Bohen in the Trading Challenge, and he’s got an INCREDIBLE new strategy that every Evolver should check out…
Growing A Small Trading Account? Check this Out
When multi-millionaire trader Mark Croock first started trading, he was an overworked and underpaid accountant…
So he knows what it’s like to start small while wanting to massively grow your wealth as quickly as possible.
That’s why he recorded a step-by-step training that reveals what he believes is the best options trading method for someone trading with a small account.
Evolvers are always asking me … what rules do I follow as a trader?
Over my many years in the markets, I’ve developed certain trading pillars that I try to follow most of the time.
And when markets are as volatile as they are today, with the S&P 500 ETF Trust (NYSEARCA: SPY) down 1.42% at the time of writing, your trading rules can potentially save you.
My rules are foundational to my trading. Reminding myself of them helps me to stay focused and keep my head in the game.
I learned most of these rules from my mentor, Tim Sykes, while there are others I’ve come up with on my own over the years.
That said, there isn’t one rule that always applies to every setup.
Because of the ever-changing nature of stocks, sometimes you need to focus on Setup A in a much different way than you approached Setup B.
But even considering this, there are three key rules that I always trade by no matter what.
Keep reading and I’ll tell you all about them…
Rule #1: Cut Losses Immediately
I’m usually dead serious about following Tim Sykes’ #1 rule — cutting losses immediately.
I first learned the importance of cutting losses quickly in Sykes’ Trading Challenge (where I learned practically everything I know about trading).
I also met my buddy Tim Bohen in the Trading Challenge, and he’s got an INCREDIBLE new strategy that every Evolver should check out…
Why Elon Musk is Probably Laughing Right Now
These days it seems like everybody wants to take their shot at Elon Musk.
And yet – Tim Bohen thinks he’s gotta be laughing his ass off right now.
Why?
Because of what he’s predicting could happen on or around October 21st.
You’ll see what he means when you watch this video.
And really, this is how you wanna try to approach your trading … like an emotionless robot with one mission — to make as much money as possible.
Of course, this isn’t possible 100% of the time because we’re not robots, we’re human beings.
But the more you can try to think like a machine in the markets, completely shoving your emotions aside, the more success you’ll likely have.
Rule #3: Don’t Let Trading Control Your Life
Even if you’re completely obsessed with the stock market (I know the feeling), you’ve gotta find balance in your life.
NEVER let trading take over your entire life.
I’m a full-time day trader. Professionally, I live for the markets…
But in the big picture, I value my time with my family more than anything.
I have a beautiful wife and three young children that mean more to me than any trade or any amount of money ever will.
That’s why I always make sure to take breaks from trading to spend time with them.
It helps me remember what’s truly important. Even better, it helps my trading.
For example, if I’m having a bad day trading, I take a break and hang out with my kids for a while.
After a brief mid-day family vacation, I come back to my trading desk recharged and ready to crush every play.
I can see the positive change in my results. It’s not a fluke. These things are directly related.
If you let the stresses of the market invade your personal life — or vice versa — you’re unlikely to realize your full potential.
Live a happy life, remember what’s important, and you’ll be a better trader for it.
Final Thoughts
We all need reminders to follow our trading rules from time to time.
And these three are the ones that have benefited me the most over my career.
Internalize these stock market pillars to help you reach your ultimate heights as a trader.
