25 Rules of Trading Discipline

Quote from eagle:



Note: Where the rule for letting the profits run? :confused:

I think we need to establish the rules for covering three topics.

- Rules for Entry
- Rules for Holding
- Rules for Exit
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Eagle,

I don't think ZAL wrote this as a trading system. The document does not deal with entries, exists, or any other such techniques. This article solely deals with the discipline portion of day trading. In day trading, letting you "profits run" can be dangerous due to sharp price noise. That's why he mentions grabbing a few ticks, and getting out.

MM
 
Quote from Scalper007:

How are the expenses same if your trading more contracts? Is the 24,000 fixed expense? Wat about commissions?

:confused:
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Fixed expenses will stay the same. Variable expenses, like commissions and exchange fees, will go up with an increase in volume. Assuming $5.00 in commissions and fees per round turn one could expect to incur an additional $12,000+ in variable expenses.

On $300,000 in gross income I would not be too upset with paying an additional 4% or 5% in variable expenses.
 
Quote from Khartoum:

It was an open question and thanks for answering. I suppose you don't trade ES then?

It strikes me as odd that in the free PalTalk rooms, 90%+ trade ES, not the bond. Why wouldn't traders naturally gravitate to the easier market?

I guess I need to understand what "easier" means in this context. :confused:
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Markets whose participants are 50% Hedgers (producers and users) are easier to trade. They are more consistent and predictable than markets whose participants are primarilly speculators (like the equity indexes).

Support and resistance levels (high volume and low volume numbers) typically hold to within a tic in a hedged market like the 30-Year Bond.
 
Excellent. But I think it's a bit too many rules presented in a slightly different ways but have the same goal, for example control losses, there should be one rule is enough.

I think the mandatory rules are 6, 23, 4, 10 and 15. Everybody can obey rule #6, but not everybody can obey rule #23 frequently with confidently. To do so the rule 10 & 15 must be embedded into trader's personality in order to encourage him to trust his gut feeling (23) because both rules (10 & 15) are there as a firewall. IMO, rule #23 is the most important and it's the wall that separate winners and losers. Never ever forget rule #4 because our ultimate goal is to increase our capital.

Quote from mr.marketz:

Eagle,

I don't think ZAL wrote this as a trading system. The document does not deal with entries, exists, or any other such techniques. This article solely deals with the discipline portion of day trading. In day trading, letting you "profits run" can be dangerous due to sharp price noise. That's why he mentions grabbing a few ticks, and getting out.

MM
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Getting back to Rule #9: Earn the right to trade bigger

I believe that if you follow this rule and have a set performance goal to enable you to increase your trade size then you will become a more profitable trader while (Rule #3) reducing your exposure to a potential disastrous day.

The fact is: if you can trade a one lot for 4 full Bond Tics with consistency then there is no reason why you couldn't trade 10 lots for 4 tics or 20 lots for 4 tics.

The lot size number in your execution srceen has nothing to do with how you manage the trade. I have learned to manage a one lot with the same discipline, perspective and perseverance as a 20 lot or even 50 lot.

Recognising and acting on a 4 tic profit or loss on a trade (no matter what the trade size is) is much more important than worrying about the dollar amount of the profit or loss.

You should consider keeping score with tics and not dollars.
 
That's called the trader mind is embedded in the tape, not in his portfolio. Easy to say, hard to do, huh!

Quote from ZAL:

You should consider keeping score with tics and not dollars.
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Please be assured that I am not Mr. Marketz nor do I have any other aliases.

Perhaps there is a way for an Elite Traders administrator to confirm this.

Let's be clear: I am a Managing Partner in TradeMaven Group, LLC. TradeMaven Group offers trader education, trading software, electronic brokerage and in addition we provide clearing services to floor traders at the CME/CBOT.

TradeMaven is a 'for profit' entity. We are in business to make a profit.

TradeMaven's sponsorsip of an Elite Trader Forum is a marketing tool used to promote our products and services to Elite Trader members. I assume the other Elite Trader Forum Sposor's share the same objective.

A good deal must be win/win for both parties. If I offer free educational utility and value added to the members of ET then perhaps some members will take a look at TradeMaven's fee based services. No one is holding a gun to anyone's head. There is nothing sinister or unethical with the exercise.

The success or failure of any trader procurring our services is 100% correlated to the time that they put in to studying the markets and behaving with discipline. As I have said before, there is no such thing as a "black box". There is no such thing as guaranteed profitable trading software or systems.

I am absolutely certain that TradeMaven Inside Edge methodology, trader education and software has proven concept. If you take a look at our program (for free) and decide that it's not for you then where is the harm? What have you lost other than a couple hours of time?
 
I have confirmed through several methods (including via phone) that Mr. Marketz is NOT Zal. Any further assertions that they are the same person will be deleted. And if anybody wants to debate this with me, start a thread in the feedback forum. Now back to the original topic...
 
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