These 5 rules, put as 'do's' instead of 'don'ts', are of course just common sense. You don't need them as rules because they are obvious to the balanced and intelligent person.
Lets look at them: methodology, discipline, expectations, patience and money management.
Methodology is the key. Do not become one of the many fools who wear as a badge of honor big losses and accounts blown out as a necessary apprenticeship. Therefore don't trade without a methodology. It must be reliable and tested, that means repeatedly checked manually and played on a good demo platform before you start live trading.
Discipline. This is better called temperament. You don't go in trading live by 'shooting from the hip' or following gut instinct. Instead you have a plan and a tested methodology. You approach is business-like. Sadly many do not have the balanced temperament necessary; they subconsciously, by rash action, want to lose and be losers.
Expectations. There is no harm in imagining riches as your constant motivation. However you stay calm and should aim in your initial live trading not to lose money. Its not easy to make money and learn how to make yourself rich but it is
easy to ensure that you do
not lose big money.
Patience. Many are the fools who as amateurs come into trading and start clicking the mouse to trade without really knowing what they are doing. It takes long hard work to prepare for successful trading. It requires problem solving using a problem solving mind. In actual trading you also need to be patient and trade only in accordance with the pace and gyrations of the market.
Money mangement. This is obvious. Only trade with limited leverage. NEVER go to a postion size outside a carefully calculated maximum relative to your cash/margin holdings. Do not ratchet up size because you think you are into a big winner. When it isn't, you may blow away a big part or even all of your account.
Bottom line: join the few who build themselves into really big money.
