Hi Shoppers,

 

You’ve heard of the 12 Days of Christmas …

 

Well, get ready for my 8 Rules of Trading.

 

Print them out.

 

Tape them to your wall.

 

Post them somewhere you can see them every trading day.

 

Check them out below.

 

1. Stick to your trade plan.  

When you veer off your plan, you involve emotion. And, frankly, there’s not a worse move a trader could make.

 

Once emotions enter and discipline goes out the window, the likelihood of making smart decisions goes down exponentially.

 

2. Know your target entry and exit prices before you enter a trade.  

Anyone out there ever chase a trade?

 

Anyone?

 

I know I’m guilty. And, shockingly, it has rarely worked out in my favor.

 

Know how much you’re willing to pay to enter the trade — and how much you’re willing to lose if the trade goes against you.

 

3. Check for stock news before you enter a position.  

Is there an upcoming earnings report?

 

Did bad news just come out about a clinical trial?

 

This step may seem insignificant, but it could be the difference between a winning trade and a 

losing one.

 

This mistake is COMPLETELY avoidable … it’s just a quick internet search.

 

Literally Google it!

 

4. Always be learning.

The second you think you know everything is the second you’ll plateau.

 

Learn from your mistakes.

 

Learn from traders who are smarter than you.

 

Learn from the mistakes THEY make.

 

Never stop learning!!!

 

5. Cut your losses.

 

Never let a loser run so far that you cannot come back and trade the next day.  

 

You can always re-enter a position with a new and improved trade plan — if you have money.

 

The most important thing is to keep yourself in the game.

 

The moment you let a trade slide too far into the negative is the moment you bench yourself.

 

And if a trade really runs away from you, you could bench yourself for good.

 

To make money trading, you have to stay in the game.

 

That starts with cutting your losers early …

 

That’s why my trade plan uses a 30%-35% stop loss on all trades.

 

Maybe your risk tolerance is higher.

 

It’s up to you to decide what you’re comfortable with — and more importantly — to respect that stop loss.

 

6. Take your profits.

Yes, your charts may say the stock looks to continue onto the trend you have ridden but once you reach a high percentage of gains, take your money.

 

Take at least half. A profit is a profit.

 

It is better to take it off too soon than to lose your gains all together.

 

7. Understand that you are not bigger than the market. 

This is critical. The sooner you embrace it, the better off you’ll be.

 

You have to realize that the market will always outlast your trading account, no matter how big it grows.

 

Not to mention, the market often moves in unpredictable and irrational ways.

 

Do not try to bend the market to your will.

 

We take what the market shows us and find ways to position ourselves to make money around 

 

it. 

 

Finally…

 

8. Stick to your trade plan.  

Hey, wait a minute!

 

That’s right. This one’s so good, I put it twice.

 

If you adhere to just one core principle on this list, let it be this one.

 

Now let’s make this new year, 2023, even better than the last!

 

Merry Christmas and Happy New Year!

Licia Leslie