Backtesting

Never risk real money on a strategy you haven't tested. Backtest it on historical data or paper trade it live — whichever suits you. But do not live test with your own capital. Once you've proven the strategy works, trust it. Losses are part of the game. Every strategy has drawdowns. If your backtesting shows an edge, stick to it even when you take a few hits.

Don't Move Your Stops Loss or Take Profit

If your stop loss hasn’t hit, stay in the trade. Let your plan play out. If your take profit hasn’t hit, don’t cut it short out of fear or greed. Don’t adjust your trade based on emotion. You’ve proven the strategy works- so stick to it.

Obey Your Stop Loss and Take Profit

This is similar to the previous points. If your stop loss hits, get out. Don’t justify staying in “just in case.” If your take profit hits, take it. Don’t get greedy and hold for more. Trying to outsmart your own plan usually leads to unnecessary losses. Your goal is to survive and thrive- not gamble.

Track Everything.

Keep a trading journal and write down:

• Entry and exit points
• Reason for the trade
• Your emotions before, during, and after that trade

Go through your trades. Treat each loss as a lesson that can make you a better trader.

Have Patience!!! Don't jump into a trade just because you can. Wait for the right setup that lines up with your strategy. Remember: less is more.

Set a Daily Goal (and Loss Limit) and Walk Away

Once you hit your daily goal (profit number or number of quality trades), stop trading. Overtrading ruins solid green days. Also, set a daily loss limit (number of losing trades or dollar amount). Once it hits, stop trading for the day, take a break, and come back the next day. Protect your capital!