Trading PillarsFirst pillar: learning to trade is hard
work, but it can be taught.
1) The successful trader
can be modeled and taught
to other people.
2) Learning to operate requires
as much education as any other
profession.
Second pillar: Know yourself.
3) You need to find a trading system that
suits your needs
4) To achieve that, you need to know
yourself:
a) Your values
b) Your strengths
c) Your weaknesses
d) Meaningful beliefs (Spiritual, yourself,
market, system)
e) Advantages
f) Trading weaknesses
5) You can only exchange your beliefs
about the markets, not the market
itself. Know and understand your
beliefs.
6) The development of the system is 100%
psychological: beliefs, mental states
and strategies.
7) You must know your personal criteria in
order to operate with a trust system.
Third pillar: Errors
8) A mistake means not following rules.
9) you are responsible for everything that
happens to you.
When you understand this, you can
correct your mistakes.
10) Avoid repeating the same mistake.
Self-sabotage.
11) An operator who comments 10
erroneous operations has an efficiency
of 90%; But that 10% drop in efficiency
might be enough to make you a losing
trader. Follow your trading plan.
Fourth pillar: Position size objectives and strategies.
12) 50% of system development consists
of thinking carefully and clearly
defining a set of written goals: desired
profit, maximum acceptable reduction,
and how important each is.
13) Meet your goals through position size
strategies.
14) Can you perform 10 operations
without errors?
15) You must know your mission / purpose
in life and incorporate it into your
trading.
16) You need to know your financial
freedom number (Passive income per
month minus expenses)
Fifth pillar: Probability and risk / reward.
17) Never open a position and know the
initial risk.
18) Define your success as multiples of
your initial risk: Risk / Reward → R:R
19)% constant losses. All operations must
have the same price.
20) Make sure the earnings on average
are more than 1R.
21) Never trade unless the R:R of this
trade is 1: 2
22) Your performance has to do with
controlling risk and managing
positions through exits.
Sixth pillar: Market systems and types.
23) Understand how your trading plan
works in each type of market:
a) Volatile bullish, quiet bullish,
laterally volatile, laterally calm,
volatile bearish, silent bearish.
24) For each type of markup, create a
large sample size to estimate what the
plan will be, i.e .: Entry, exit,
and profit-taking strategy.
