Building a trading process · Lesson 1 of 3
Writing your rules
Define entry, stop, target and size before you trade.
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A plan before a position
Writing down your criteria before entering a trade forces the thinking to happen while you can still change it. The rules should cover what qualifies, where the stop is, what the target is and how the size is chosen.
The value is in applying the rules consistently, so that a series of trades reflects a process rather than a set of isolated reactions.
Key takeaway
Use these concepts to understand the market, not to assume a particular outcome. Always define uncertainty and risk before making a decision.