Trading rules examples

Good trading rules are specific, checkable and written as if-then statements, so the situation triggers the action. "Be disciplined" is not a rule; "If I have taken 3 trades today, then I stop trading" is. Start with five rules that cover the most expensive habits: a daily trade limit, a daily loss limit, a maximum risk per trade, a cooldown after a loss and a time after which you take no new trades. Keep at most seven active rules, re-read them before every session, and change the numbers only outside market hours.

Five starter rules

Edit the numbers to fit your own capital and style. These are process examples, not recommendations.

If I have taken 3 trades today, then I stop trading for the day.
If my day loss reaches my daily limit, then I close the terminal.
If I size a trade, then I risk at most 1% of my capital to the stop.
If I take a loss, then I wait 15 minutes before the next trade.
If the time is 14:30, then I take no new trades.

How to make rules stick

Write them down and re-read them every morning before the open.
Tighten a rule any time; loosen it only after a waiting period, so you do not loosen it in the heat of a bad day.
Do not edit rules during market hours.
Each week, choose one rule as your focus and measure how often you followed it.

Rules for process, not outcomes

"Make X per day" is a goal, not a rule, and it pushes you to force trades. Rules should describe what you do in a situation, which you control, rather than what the market gives you, which you do not.

Educational content about trading process. Not investment advice.

Questions

How many trading rules should I have?

Few enough to remember and check daily. Five to seven active rules is a practical maximum.

Why the if-then format?

If-then plans link a clear trigger to a specific action, which makes the action easier to carry out when the moment comes than a general intention.

Useful calculators

Put this into practice

DisciplineTrade turns these routines into a daily habit: rules re-read each morning, plans before entry, behaviours flagged automatically. Free.

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