[rxs0005]

great practical wisdom thanks y'all

[AgeKay]

NEVER average down. You only learn this the hard way.

[MadMarketScientist]

Don't trust optimizations your run on strategies unless every outcome of your various variables yields a positive result AND don't forget to input both commission and slippage into your calculations or you could be in for a surprise.

[METrades]

#1 Rule: Cut your losses quickly. Once a trade turns against you, kill that emotional thread that says, "It'll come back". You may look at cutting losses, as losing money, but actually, it's a strategy. It's proper management, that will "save" you money, and a piece of mind, in the longer run.

[minoo]

I just had a sunday conversation with one of my pals & something similar pop up
Your question is challenging, Rule, Discipline & Adherence .. .
Below is my good attempt to answer it

Pre-Market Routine and Preparation of Thyself and System (both)

As per myself, the above is more of a Process or Good Habit.
In my book, If my mind knows of a Rule it inadvertently wonders off to break it

I learned to choose less tussle with my grey-matter and discipline for ones own good.
Tried different approach with Process, Routine, Guidelines rather than to let my mind know that 'Its a Rule' This way it seems to work more regularly for me.

Note:
When learning to trade and struggling, I went through the Rule base plan where I found both my system and method unnecessary challenge more by my traderself than technically or by trading events. But it was necessary to experience this phase in a rule based environment. Its like when learning to drive the car, you are aware of the rules of the road but hardly can drive correctly. Also become too cautious and you put the mental breaks on your ability to learn.

For me rules work better in my learning plan (with repetation, balance & progression) than ever in my trading plan. I have experienced & derived at something different now, which works mostly.

A good question my friend, Hope this helps

Regards Minoo

[amswak]

Originally Posted by METrades »

#1 Rule: Cut your losses quickly. Once a trade turns against you, kill that emotional thread that says, "It'll come back". You may look at cutting losses, as losing money, but actually, it's a strategy. It's proper management, that will "save" you money, and a piece of mind, in the longer run.

Agreed. This is my #1 as well. Never rationalize a loss. The moment you say "It'll come back," you've probably already gone too far.

[trade101]

Hello,

I agree with Minoo - our mind will always find many ways to walk around the rules. One way to trick the mind is to "buy" it - real money - cash only....
Of course rules is only one link in the whole game but important one.
I would say #1 (universal) rule is: " Follow the rules".

[MadMarketScientist]

I can virtually guarantee you that you can teach 10 people a very effective system with clear-cut rules. And, 9 out of 10 of them will end up breaking those rules, usually immediately. It is one of the hardest things to do, to have the discipline to follow a system and its rules, even if it is actually a profitable one at that.

It's just very difficult for human nature when following those rules also lead to loss. We just instinctively always want to "fix" it. Fight or flight when it comes to trading.