Psychology & Risk Management For Traders

1. I keep Blue Channels turned off while trading.
2. I do not care about others opinions I care only about price and chart action.
3. I do not try to predict, instead I trade in accordance with the chart.
4. I am not trying to prove I am right I am trying to make money.
5. I am not trading for ego gratification I am trading for money.
6. I am not trying to be the genius who calls a top I am the trend follower who follows a trend all the way up until it ends.
7. I admit freely to my losing trades along with my winning trades.
8. I do not get emotionally attached to each price movement through out the day.
9. I have faith in my rules, methodology and system.
10. I understand it that it is the market conditions and not me that creates profits.

RISK MANAGEMENT

1. I never add to a losing positions.
2. I carefully control position sizing to limit risk based on volatility.
3. I attempt to never lose  more than 1% of my capital on any one trade.
4. I trade smaller when volatility is high.
5. I have stale stops and sale positions that do not trend in four days after entry.
6. I quickly sell losing trades when my stop is hit.
7. I sell stocks when they close in the bottom of the days range.
8. I never expose more than 6% of my capital to possible loss at any one time.
9. Risk is priority #1, profits are #2.