25 Rules of Trading Discipline

Rule # 1 is not a rule it is a statement saying something like market just is doesn’t make it a rule.
Rule # 2 is rule #1. Any difference?
Rule # 3 You guys must read this, it is too funny. “ Lower your trade size when you are trading poorly” and last sentence “lower your trade size, try to make a tick or two – or even scratch the trade – and then raise your trade size after two consecutive winning trades.”

So after making one tick on one trade and one on the other I am good to go?

Rule # 4 Never turn a winner into a loser. What is a winner? One tick? Two, tree,..?
Rule # 5 Your biggest loser cannot exceed your biggest winner. It can only apply to day traders that do not hold overnight, ever heard of gaps?
Rule # 7 what is written about rule # 7 is a contradiction to rule # 9 and your statements in this thread. I thought you said there is no difference what size you trade as long as you are profitable with one lot and you are thinking in ticks and not dollars?
Rule # 8 shouldn’t exist if one follows rules # 1, 2 and 6.
Rule # 10 shouldn’t exist if one follows rules # 1, 2 and 6.
Rule # 11 same as # 10
Rule # 12 same as # 10 and # 11. What is wrong with you?
Rule # 13 about news. News are very relevant to a day trader because markets react to news, ignoring news is stupid for day trader especially for someone who tries to make 4 ticks.
Rule # 14. You are saying that day trader is not a speculator, please explain. Don’t you speculate that “The probability of the winning day or week is greatly increased if you trade short term”?
Rule # 15. just plain stupid. If you follow rules # 1, 2 and 6. You just have loses as a part of the business, you do not have to love them.
Rule # 16 probably applies to traders who look for 4 ticks.
Rule # 17 Never take a big loss. So what do you do? Wait until it becomes a small loss? And again if you follow rules 1, 2 and 6 no need for this rule.
Rule # 18 “……If you are a NEW e-mini S&P trader try to make just 5 or 6 points per day…..”
Rule # 19 Hit singles not Home Runs. Shouldn’t trader just follow the plan (system)?
Rule # 21 There have been many studies showing the opposite for a day traders. Day traders perform better with profit targets or trailing stops. Scaling out of a winning position is a sure way to loose your profits (for day traders only).
Rule # 22 So if system will start losing do you just keep on executing it?
Rule # 23 Having plan (system) eliminates the need for this rule.
Rule # 24 Cannot disagree more. Capitalization is a major factor and we are all different in that matter. The more money I have the easier for me to trade. More experience I have the easier for me to trade.
 
Quote from ZAL:

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.
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Appreciate the reply.
 
Quote from balda:

Rule # 1 is not a rule it is a statement saying something like market just is doesn’t make it a rule.

No, it's a rule. Trade with discipline and the market will reward you.

Rule # 2 is rule #1. Any difference?

Yes, it deals with frequency

Rule # 3 You guys must read this, it is too funny. “ Lower your trade size when you are trading poorly” and last sentence “lower your trade size, try to make a tick or two – or even scratch the trade – and then raise your trade size after two consecutive winning trades.”

...and you have a problem with this...why?

So after making one tick on one trade and one on the other I am good to go?

yes, it's called getting your confidence back

Rule # 4 Never turn a winner into a loser. What is a winner? One tick? Two, tree,..?

4 tics in US 30-Year is a reasonable objective

Rule # 5 Your biggest loser cannot exceed your biggest winner. It can only apply to day traders that do not hold overnight, ever heard of gaps?

Yes, I've heard of gaps. Ever hear of 24 hour trading? We don't have gaps anymore.


Rule # 7 what is written about rule # 7 is a contradiction to rule # 9 and your statements in this thread. I thought you said there is no difference what size you trade as long as you are profitable with one lot and you are thinking in ticks and not dollars?

No it's not a contradiction. Rule #7 has to do with ones comfort zone. Have you read the expalnation next to each Rule?

Rule #9 simply says earn the right to trade bigger.

Rule # 8 shouldn’t exist if one follows rules # 1, 2 and 6.

...and what if you don't follow rules #1, 2 and 6?


Rule # 10 shouldn’t exist if one follows rules # 1, 2 and 6.

This is why there are rules t follow because we all break them from time to time. It is a reminder to get out.

Rule # 11 same as # 10

....same answer to you

Rule # 12 same as # 10 and # 11. What is wrong with you?


What's wrong with you. What is so hard to understand about the concept of rules? According to you I should just have one rule: Be Disciplined.


Rule # 13 about news. News are very relevant to a day trader because markets react to news, ignoring news is stupid for day trader especially for someone who tries to make 4 ticks.

....really? Grammar is relevant too.

Rule # 14. You are saying that day trader is not a speculator, please explain. Don’t you speculate that “The probability of the winning day or week is greatly increased if you trade short term”?

I trade. I bet you speculate.


Rule # 15. just plain stupid. If you follow rules # 1, 2 and 6. You just have loses as a part of the business, you do not have to love them.

OK, how about like to lose money?


Rule # 16 probably applies to traders who look for 4 ticks.

That would be me.


Rule # 17 Never take a big loss. So what do you do? Wait until it becomes a small loss? And again if you follow rules 1, 2 and 6 no need for this rule.

We've covered the need for rules.


Rule # 18 “……If you are a NEW e-mini S&P trader try to make just 5 or 6 points per day…..”

You have a problem with this and why?

Rule # 19 Hit singles not Home Runs. Shouldn’t trader just follow the plan (system)?

Yes, the plan is to hit singles.

Rule # 21 There have been many studies showing the opposite for a day traders. Day traders perform better with profit targets or trailing stops. Scaling out of a winning position is a sure way to loose your profits (for day traders only).

A love to see the results of the studies you are referring to>


Rule # 22 So if system will start losing do you just keep on executing it?

I would changing the system.

Rule # 23 Having plan (system) eliminates the need for this rule.

I forgot...evreyone has a plan, right? The rules were meant to help everyone not just geniuses like you.


Rule # 24 Cannot disagree more. Capitalization is a major factor and we are all different in that matter. The more money I have the easier for me to trade. More experience I have the easier for me to trade.
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Everyone starts at zero when they turn on their screens in the morning.
 
Quote from ZAL:

Everyone starts at zero when they turn on their screens in the morning.
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You need to learn how to quote and respond properly. It looks like one quote without response.
 
Quote from balda:

You need to learn how to quote and respond properly. It looks like one quote without response.
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Yes, I know. My mistake. I'm still learning.
 
I hope we will have a refined version at the end of this thread, probably number of rules will be shrunk and each rule will be more concise.
 
Your "25 rules" are just a gimmick to lure a newbie. Newbie will take anything for free.



Quote from ZAL:

Everyone starts at zero when they turn on their screens in the morning.
More...

I will assume that your last sentence is a response to my last sentence

Quote from balda:


Rule # 24 Cannot disagree more. Capitalization is a major factor and we are all different in that matter. The more money I have the easier for me to trade. More experience I have the easier for me to trade.
More...


There is a big difference between someone who's account balance can barely cover margin for one contract and other person who can sleep comfortably holding 20 contracts overnight.

I am very suspicious of the firm that cannot even name their product properly.

25 rules should be called "Our firm's policy on how to scalp for 4 ticks"
 
Quote from balda:

Your "25 rules" are just a gimmick to lure a newbie. Newbie will take anything for free.





I will assume that your last sentence is a response to my last sentence




There is a big difference between someone who's account balance can barely cover margin for one contract and other person who can sleep comfortably holding 20 contracts overnight.

I am very suspicious of the firm that cannot even name their product properly.

25 rules should be called "Our firm's policy on how to scalp for 4 ticks"
More...



One's comfort level with holding a position overnight has nothing to do with the equity in the account. It has everything to do with the profit or loss on the account. A good rule of thumb is: don't take a losing position home overnight. Just because you can afford to lose on a trade doesn't mean that you should lose your discipline on the trade.

The Rules were authored by me not my firm. You can choose to disregard the rules but ripping them as inconsequencial prooves your naivete as a trader.
 
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