My TRADING RULES based on 4years
1. Avoid Greed and Impulsive Entries
Never enter a trade impulsively or with greed. Instead, look for optimal entries and consider scaling into positions.
2. Gradual Entry Strategy
Enter trades in 3 steps:
1. Initial entry with 30% of allocated capital
2. Dollar-cost averaging (DCA) at 30% loss
3. Additional DCA at 50% loss
3. StopLoss: A Crucial Risk Management Tool
Always set stop-losses to limit potential losses. Failure to do so can result in significant losses.
4. Leverage Management
Use small leverage initially and increase as needed. Leverage can amplify profits but also increases liquidation risk.
5. Trade Management and Risk Reduction
If a trade turns against you, consider cutting your position in half at the entry point and waiting for a potential DCA opportunity.
6. Take Profits Along the Way
Take profits at 20%, 50%, and subsequent levels to lock in gains and reduce risk.
7. Stop-Loss Adjustment
Adjust stop-losses as the trade progresses:
1. Move stop-loss to the given price in the signal
2. Move stop-loss to break-even (entry point) at 20% profit
3. Move stop-loss to the first take-profit level at 40% profit
8. Consistency in Trade Sizing
Maintain consistent trade sizing to avoid disproportionate losses.
9. Research and Due Diligence
Conduct thorough research and analysis before entering a trade, considering multiple time frames and technical indicators.
10. DCA
Master the art of DCA timing to minimize risk and maximize rewards.
11. Risk Management
Always prioritize risk management and adjust position sizing accordingly.
12. Market Awareness and Adaptability
Stay informed about market trends, world events, and economic indicators to adapt your trading strategy accordingly.
13. Stop-Loss: Embracing Losses and Managing Risk
is important.
14. Risk-Reward Balance
Maintain a balance between risk and reward, adjusting position sizing and leverage to manage potential losses.
16. Emotional Discipline and Patience
Cultivate emotional discipline and patience, avoiding impulsive decisions based on greed or fear