Things to Recite Every Morning Before Trading!

These are the things I'll recite every morning before trading. Something that I've realized is that I need to get mentally prepared before starting my trading day.

I'm sure I'll continue to add to this list....

1. Never Let a winning trade turn into a looser. To me a winning trade is 15 pips and greater.
2. If you are trying to justify why you should stay in a trade you should have already closed your position.
3. Never double up on a loosing trade.
4. Do not get consumed with trying to hit a home run every time. Concentrate on consistent steady profits.
5. Always measure risk and reward before entering a trade. The reward should always outweigh the risk.
6. Have your exits planned before entering a trade. You should have your profit targets and stop losses figured before you enter a trade. If you don't how can you analyze #5?
7. Don't think and try to guess what the market will do. Every chart tells a story. Just react to what it's telling you.
8. Follow your rules for trading.

Priorities

A philosophy professor stood before his class with some items on the table in front of him. When the class began, wordlessly he picked up a very large and empty mayonnaise jar and proceeded to fill it with rocks, about 2” in diameter. He then asked the students if the jar was full. They agreed that it was.

So the professor then picked up a box of pebbles and poured them into the jar. He shook the jar lightly. The pebbles, of course, rolled into the open areas between the rocks. He then asked the students again if the jar was full. They agreed it was.

The professor picked up a box of sand and poured it into the jar. Of course, the sand filled up everything else. He then asked once more if the jar was full. The students responded with a unanimous “Yes”.

The professor then produced two cans of beer from under the table and proceeded to pour their entire contents into the jar-effectively filling the empty space between the sand. The students laughed.

”Now”, said the professor, as the laughter subsided, “I want you to recognize that this jar represents your life. The rocks are the important things - your family, your partner, your health, and your children - things that if everything else was lost and only they remained, your life would still be full”.

”The pebbles are the other things that matter - like your job, your house, your car. The sand is everything else. The small stuff. If you put the sand into the jar first”, he continued, “There is no room for the pebbles or the rocks. The same goes for your life. If you spend all your time and energy on the small stuff, you will never have room for the things that are important to you. Pay attention to the things that are critical to your happiness. Play with your children. Take time to get medical checkups. Take your partner out dancing. There will always be time to go to work, clean the house, give a dinner party and fix the disposal. Take care of the rocks first - the things that really matter. Set your priorities. The rest is just sand.”

One of the students raised her hand and inquired what the beer represented. The professor smiled. “I'm glad you asked. It just goes to show you that no matter how full your life may seem, there's always room for a couple of beers.”