Thou Shalt Never Lose More Than 25 Percent of Thine Account
Thou Shalt Test Before Trading
Thou Shalt Stand Accountable to Another Person for Thy Trades
Discipline, discipline, discipline
Don't Become Cocky
It is a myth to think that you need to pay 'tuition' fees to learn about anything about trading. Sure you have to accept losses as part and parcel of trading just like you accept your bigger wins.
Discipline is the main reason why traders are able to stay in the game. Note, I did not say successful. The moment you think you are successful, you complete a cycle that goes from Humble to Cocky then Humble again. There were successful traders and institutions who later became failures, remember LTCM (Long Term Capital Management, yea yea) and Nick Leeson. They are terribly smart but got carried away when they chose the slippery path of forgetting their discipline.
Discipline is key to why independent traders can perform better than some hedge funds with their overload of information and hi-tech stuff and multiple screens.
