(Watch the Video Online: Market coach Doug Hirschhorn, PhD, discusses 13 rules for traders to follow in 2010.)
As 2010 approaches, we have time to reflect on what we’ve done this year and what we intend to do next. Because I’m a trading coach, I have access to some of the greatest minds on Wall Street. Here’s a list of best practices I’ve gathered from them this past year.
- I will create game plans for all of my trades.
- I will trade only when I have edge.
- If I have 3 losing trades in a row, I will take a break, walk away and clear my head.
- I will never trade for revenge.
- Anytime I’m hoping, wishing or praying, I will exit the trade immediately.
- I will never give back more than half of my profit on any trade.
- I will keep a daily trading journal and email it to who will hold me accountable.
- I will think in terms of probabilities and risk/reward.
- I will remain objective in my trades by asking, “If I had no trade on, what would I do?”
- I will never put more than 20% of my capital at risk in any single position.
- I will not make trades just because I’m afraid to “miss out.”
- I will quickly recognize my emotions and compartmentalize them rather than waste time trying to get rid of them.
- And finally, I will trade to make money, not to be right.
I’m confident that if you commit to following these 13 rules, you’ll be more profitable in 2010.
Think better, invest smarter.
